Ex-1MDB CEO Arul Kanda may turn into star witness against Najib

Former 1MDB CEO Arul Kanda Kandasamy now has the potential to testify against former prime minister Najib Abdul Razak in the duo’s audit report case involving the Malaysian sovereign wealth fund.

Deputy public prosecutor (DPP) Gopal Sri Ram this morning applied for the Kuala Lumpur High Court’s green light to call co-accused Arul Kanda to give oral evidence against the former finance minister.

Previously, on Nov 18, 2019, the prosecution informed the court that they intend to call Arul Kanda.

During proceedings before trial judge Mohamed Zaini Mazlan this morning, former Federal Court judge Sri Ram said Arul Kanda possesses material information that can boost the case against Najib.

“This accused (Arul Kanda) has info in relation to transactions with the other accused (Najib), which will materially affect the outcome of the prosecution of that accused (Najib).

“He (Arul Kanda) has information in his possession relevant to the charge against the other accused (Najib) in relation to the meeting held in February (24, 2016), events that preceded it, and events that followed that meeting,” Sri Ram said.

Alleged decision

The Feb 24 meeting was when the alleged decision to amend the 1MDB audit report was made.

The ad hoc DPP added that the application was made under Section 63 of the MACC Act 2009.

Section 63 (1) states that “Whenever two or more persons are charged with an offence under this Act, the court may, on an application in writing by the Public Prosecutor, require one or more of them to give evidence as a witness, or witnesses for the prosecution”.

Subsection (3) of the provision also states that such a co-accused, who is required to testify, is entitled to indemnity (compensation for harm or loss) under the seal of the court.

When Zaini asked Arul Kanda’s lead defence counsel N Sivananthan whether they had any objections against the application, the lawyer said they would leave it to the court.

However, Najib’s lead defence counsel Muhammad Shafee Abdullah indicated they would object to the application.

The lawyer contended that the application raises problems involving the Federal Constitution.

“When you make this application, you must satisfy the court whether the court is happy or not based on its total discretion.

“They (prosecution) have to satisfy whether it (application) is not offensive to the trial per Section 63. They have to satisfy whether they have cases (legal precedents) and provisions that support this.

“This application is the first one in modern times, including the issue of constitutional nature,” Shafee contended.

Zaini then directed the prosecution to file their written submissions by next Monday (May 23) and for Najib’s legal team to file theirs by next Friday (May 27).

The judge also set May 30 to hear the parties’ submissions on the merits of calling Arul Kanda to testify against Najib.

According to a copy of the written application revealed to the media today, the document dated April 14 was signed by Attorney-General Idrus Harun.

"I, Tan Sri Idrus bin Harun, the Public Prosecutor, hereby apply to this Honorable Court to require Arul Kanda a/l Kandasamy, the accused in Criminal Trial No WA-45-11-04/2019, to give evidence as a witness for the prosecution in the abovementioned criminal trial," the document stated.

Ordered amendments

Najib is charged with using his position to order amendments to 1MDB's final audit report before it was presented to the Public Accounts Committee (PAC) to prevent any action against him.

Co-accused Arul Kanda was charged with abetting Najib in making the amendments.

The charges are framed under Section 23 (1) of the MACC Act 2009, which specifies a jail term of up to 20 years and a fine of no less than five times the amount of gratification or RM10,000, whichever is higher.

The prosecution is contending that a decision to make the amendments was taken during a meeting on Feb 24, 2016, at the office of then chief secretary to the government Ali Hamsa.

It was alleged this was done to remove or alter certain portions of the 1MDB audit report, including dropping the issue of wanted fugitive Low Taek Jho’s (Jho Low) attendance at the fund’s board meetings.

Another issue that was allegedly dropped from the 1MDB audit report was the two conflicting 2014 financial statements of the sovereign wealth fund.

Besides Ali and Arul Kanda, others who were present at the meeting were former auditor-general Ambrin Buang, former National Audit Department officer Saadatul Nafisah Bashir Ahmad, Najib’s former principal private secretary Shukry Salleh, and then Attorney-General’s Chambers representative Dzulkifli Ahmad.

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