Irwan fails to include 6 others as third parties in 1MDB suit

Former 1MDB chairperson Mohd Irwan Serigar Abdullah today failed in his bid to include six other individuals as third parties in the US$6.59 billion lawsuit filed against him by 1MDB.

High Court commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan granted the six’s application to dismiss the third-party notice filed by Irwan.

The six are two former 1MDB board members, Kamal Mohd Ali and Norazman Ayob; former chief financial officer Azmi Tahir; former chairperson Lodin Wok Kamaruddin; former chairperson Asri Hamidin @ Hamidon; and current chairperson Johan Mahmood Merican.

Azmi’s lawyer Rahmat Hazlan stated that the court found that there was an inordinate delay by Irwan (above) in initiating third-party proceedings, given that 1MDB had commenced the lawsuit in 2021.

“The third-party application was filed four months before the trial began. Therefore, it constitutes an abuse of the court process, and the court dismissed Irwan’s claims against all the third parties,” the lawyer told reporters after the proceedings.

On May 30, Irwan filed an ex-parte application against the six individuals, seeking indemnity or contribution in the event he is found liable for the lawsuit filed by 1MDB against him and former CEO Arul Kanda Kandasamy.

The lawsuit is set to be heard this coming Monday.

In May 2021, 1MDB filed a lawsuit against Irwan and Arul Kanda, accusing them of breach of trust and conspiracy resulting 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 claimed that Irwan colluded with Arul Kanda to extend an employment agreement, paying a substantial amount of RM2,905,200 to Arul Kanda, which disregarded 1MDB’s interests and resulted in losses and damages to the company.

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

- Bernama

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