KUALA LUMPUR: Verbal sparring erupted at the High Court today, during a proceeding in which 1Malaysia Development Berhad (1MDB) is seeking US$6.59 billion from its two former top executives.
This occurred after witness Richard Templeman was asked to compare his conclusions in the 1MDB financial scandal with the findings of the Public Accounts Committee (PAC) report from eight years ago.
The financial fraud investigator is testifying in the 1MDB lawsuit against its former top brass Arul Kanda Kandasamy and Tan Sri Mohd Irwan Serigar Abdullah who were the company's former chief executive and former chairman, respectively.
Arul Kanda's lawyer Sanjay Mohan when cross-examining the witness, asked the latter to refer to the PAC report which pointed blame on the management of the wealth fund, specifically his client's predecessor Datuk Shahrol Azral Ibrahim Halmi for mismanagement.
Shahrol Azral held the position from 2009 to 2013, before Arul Kanda took over from January 2015 to June 28, 2018.
However, Templeman in his witness statement pointed the finger to Arul Kanda and Irwan Serigar as the persons responsible for the global-scale financial scandal.
However, the witness agreed with the lawyer when he was pressed to look at the PAC document during the proceeding before judicial commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.
Sanjay: Look at the PAC report and see what it says, and look at what you're saying. It is a very different conclusion. Surely you are able to answer that.
Templeman: No, I don't think I can comment without seeing scope of their (PAC) report.
Sanjay: Mr. Templeman, I'm sorry, but you are a witness in this case. You have made allegations against my client. You should have read the report before coming.
Templeman: Yes.
Sanjay: I just put it to you that what you are saying in August or September this year is very different from what the PAC's findings are in April 2016.
Templeman: Yes.
The witness who has 24 years of experience in investigating complex fraud and financial crime also agreed that Arul Kanda's name was never mentioned in the United States Department of Justice's civil lawsuit on July 21, 2016.
Sanjay: Based on this document, there is no evidence indicating any misconduct by my client (Arul Kanda).
Templeman: That is what the document states.
Sanjay: No evidence, correct?
Templeman: This was clarified by the former attorney-general (Tan Sri Mohamed Apandi Ali).
In May 2021, 1MDB filed a suit against Arul Kanda and Irwan over an alleged breach of trust and conspiracy, causing 1MDB to suffer losses amounting to US$1.83 billion, in relation to its investment in 1MDB-Petrosaudi Ltd.
1MDB also claimed that the two defendants committed a breach of trust and conspiracy by misappropriating 1MDB funds amounting to US$3.5 billion, paid to Aabar Investments and US$1.265 billion, paid to International Petroleum Investment Company (IPIC), on May 9, 2017.
1MDB alleged that Irwan also conspired with Arul Kanda to cause the company to implement the Employment Extension Agreement, and made a substantial payment of RM2,905,200 to Arul Kanda as per the agreement, regardless of 1MDB's interests, causing the company to suffer losses and damages.
In this regard, 1MDB, among others, demanded that the two defendants pay US$6.59 billion for the breach and an additional RM2.9 million from Irwan in relation to the Employment Extension Agreement.