Irwan Serigar applies to strike out US$6.59 bln 1MDB suit

KUALA LUMPUR: Former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah has applied to strike out the suit filed by 1Malaysia Development Berhad (1MDB) against him and former chief executive officer Arul Kanda Kandasamy to pay US$6.59 billion.

Based on documents obtained by the media via the the court system, Mohd Irwan in his application alleged the suit against him, was premature as the investment of Brazen Sky Limited and the payment of Aabar Investments PJS Limited were not clearly unsustainable as the court has yet to determine 1MDB suffered losses of US$1.83 billion and US$3.5 billion.

Mohd Irwan who was a former IMDB director claimed he did not have any contractual, statutory or fiduciary obligations to 1MDB because his appointment as a director of 1MDB was after the losses had allegedly been suffered by 1MDB.

He said he was very confused why 1MDB board of directors prior to his tenure as chairman of 1MDB was not sued, even though Brazen Sky's investment and Aabar Investment payments were made during the previous management's period.

According to Mohd Irwan, the loss claim allegedly suffered by 1MDB was an abuse of court process as 1MDB had obtained money as soon as the settlement was reached in the civil suit with other parties filed by 1MDB.

He said 1MDB's claim against him for a refund of US$1.265 billion paid to International Petroleum Investment Company (IPIC) under the Consent Award dated May 9, 2017, was clearly inconsistent with 1MDB's current stance in the company's application to set aside the award in the London arbitration.

If 1MDB is successful in the application (set aside), it means that 1MDB does not suffer any losses arising from the Consent Award.

"Furthermore, 1MDB's case in the application (set aside) was that the board of directors of 1MDB at the time, including me, had no choice but to follow the instructions of the shareholders' representative, Datuk Seri Najib Tun Razak (at the time)," he claimed in the application.

On 1MDB's payment to Arul Kanda (first defendant) through the Employment Extension Agreement dated 23 Feb 2018, Mohd Irwan claimed that 1MDB's claim on the agreement was clearly unsustainable.

Mohd Irwan claimed that as the chairman of the board of directors, his duties and responsibilities were only towards 1MDB as a company and not towards the Federal Government at that time.

"I am not a political appointee or a member of any political party who is interested in the results of the 14th general election (GE14). In any case, the decision to implement the Employment Extension Agreement is a collective decision by the board of directors which has the appropriate authority to decide on such matters, " he claimed.

Meanwhile, lawyer Lavinia Kumaraendran who represented Mohd Irwan when contacted by reporters said today was set for case management before High Court senior assistant registrar Azlinda Ahmad Sharif online and the court set April 20 for further case management.

1MDB, which filed a suit against Arul Kanda and Mohd Irwan in May last year, alleged that the two defendants had committed 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 which was converted into the alleged Brazen Sky Limited investment said to be found in the Bridge Global Fund.

1MDB also alleges that the two defendants committed breach of trust and conspiracy by misappropriating 1MDB money amounting to US$3.5 billion paid to Aabar Investments and US$1.265 billion paid to IPIC on May 9, 2017.

1MDB claims that Mohd 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 in accordance with the agreement, regardless of 1MDB's interests, causing the company to suffer losses and damage.

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 Mohd Irwan in relation to the Employment Extension Agreement.

-- BERNAMA