KUALA LUMPUR: Former 1Malaysia Development Bhd (1MDB) chief executive Arul Kanda Kandasamy could have unearthed the alleged billions in financial irregularities in the company if he had conducted a thorough investigation, the High Court heard.
Financial fraud investigator Richard Templeman made this statement when testifying in 1MDB US$6.59 billion lawsuit against Arul Kanda and its former chairman Tan Sri Mohd Irwan Serigar Abdullah.
Templeman, in his witness statement, highlighted various suspicious transactions made by the sovereign wealth fund that Arul Kanda and Irwan failed to notice, including the utilisation of Deutsche Bank's US$1.225 billion loan, as well as those involving Brazen Sky Limited and Good Star Limited.
However, when cross-examining the witness, Arul Kanda's lawyer Sanjay Mohan contended that Templeman's comments were merely speculative and unsubstantiated.
Sanjay: Your allegations or comments are premised on half-truths, only some documents, and the perspective of what only the plaintiff (1MDB) is saying.
Templeman: I disagree.
Sanjay: You did not give a balanced view of things and your views are unfounded.
Templeman: I disagree. However, the witness, who has 24 years of experience investigating complex fraud and financial crime, agreed that Arul Kanda was not the chief executive during the period when several suspicious transactions involving billions of ringgits in 1MDB funds occurred between 2009 and 2014.
Datuk Shahrol Azral Ibrahim Halmi served as CEO from 2009 to 2013, followed briefly by Mohd Hazem Abd Rahman, before Arul Kanda took over from early 2015 until mid-2018.
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.
The trial before judicial commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues.