1MDB’s ex- CEO Arul Kanda clueless on company’s ‘investments’ - Tony Pua

KUALA LUMPUR: The High Court here today was told that the former chief executive officer (CEO) of 1Malaysia Development Berhad (1MDB) Arul Kanda Kandasamy was absolutely uncertain as to what the value of the 1MDB's 'investments' were or whether they even exist in the first place.

The former Petaling Jaya Utara Member of Parliament Pua Kiam Wee, better known as Tony Pua, said this while testifying as the plaintiff's second witness in the US$6.59 billion civil lawsuit filed by 1MDB against Arul Kanda and former treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah.

Tony Pua, 52, who was appointed as the Political Secretary to the Minister of Finance Lim Guan Eng in 2018, said he can say this for a fact because he attended the meeting with 1MDB representatives to determine the financial status of the sovereign wealth fund.

"After the 14th General Election, the new minister (Lim) had a meeting on May 22, 2018, with representatives of 1MDB to determine the financial status of 1MDB. I also attended this meeting.

"When asked about 1MDB's investments, Arul Kanda claimed that all financial matters were handled strictly by the chief financial officer of 1MDB Azmi Tahir and he was absolutely uncertain as to what the value of these 'investments' were or whether they even exist in the first place," said Tony Pua.

He said, following that, Lim went on to state in a media release about the outcome of the meeting.

The witness further said that, in June 2018, 1MDB terminated the employment of Arul Kanda with immediate effect on the grounds of breach of contract and fiduciary duty as CEO of 1MDB. Arul Kanda was the CEO of 1MDB from 2015 to 2018.

When queried by Arul Kanda's lawyer Sanjay Mohan if Tony Pua asked the 1MDB board of directors to be investigated, Tony Pua said, "I believe so".

In May 2021, 1MDB filed a lawsuit against Mohd Irwan and Arul Kanda over an alleged breach of trust and conspiracy that resulted in US$1.83 billion in losses related to the company's investment in 1MDB-Petrosaudi Ltd, which was later converted into the Brazen Sky Limited investment, said to be recoverable from the Bridge Global Fund.

1MDB also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5 billion in company funds paid to Aabar Investments and US$1.265 billion paid to International Petroleum Investment Company on May 9, 2017.

1MDB is seeking US$6.59 billion in damages from both defendants for these violations and an additional RM2.9 million from Mohd Irwan related to the extension of the employment agreement.

The trial before Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues tomorrow.

--BERNAMA

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