1MDB: Fraud investigator admits his conclusion differs from PAC report

A UK-based financial fraud investigator conceded that he and Malaysia’s Public Accounts Committee (PAC) arrived at different conclusions over the 1MDB debacle.

Richard Templeman was called by 1MDB to strengthen the plaintiff’s civil suit against its ex-CEO Arul Kanda Kandasamy. However, the PAC laid the blame on the latter’s predecessor Shahrol Azral Ibrahim Halmi over alleged wrongdoing at the Malaysian sovereign wealth fund.

Templeman was testifying during the Kuala Lumpur High Court hearing today of 1MDB’s US$1.83 billion (RM8.05 billion) lawsuit against Arul (above, left) and ex-Treasury secretary-general Mohd Irwan Serigar Abdullah.

Irwan is also a former director of the troubled Malaysian sovereign wealth fund.

Templeman, a witness for plaintiff 1MDB, was replying during cross-examination by lawyer Sanjay Mohan, who is acting for defendant Arul.

Sanjay: Your finding is different than the PAC finding in 2016?

Templeman: Yes.

During the grilling, Templeman said his overall testimony did not amount to making allegations against Arul.

PAC findings

In 2016, the PAC’s 106-page report concluded that the financial debacle that beset 1MDB was due to mismanagement by Shahrol, who helmed the fund from 2009 until 2013.

Following a brief stint by ex-CEO Mohd Hazem Abd Rahman, Arul was brought on board 1MDB from early 2015 until mid-2018.

Among the weaknesses identified in the PAC report included 1MDB management’s failure to conduct due diligence before investing US$1 billion in a joint venture with PetroSaudi International Limited (PSI) in 2009.

During the first day of the trial yesterday, Templeman testified that fugitive businessperson Low Taek Jho (Jho Low) used his shell company to funnel US$2.4 million from 1MDB into the accounts of US celebrities, Pharrell Williams and Kim Kardashian.

Hearing before judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan continues today and tomorrow.

Alleged breach of trust, conspiracy

In May 2021, 1MDB filed the civil suit against Arul and Irwan to seek compensation for its losses due to the joint venture with PSI.

1MDB claimed that the duo committed a breach of trust and conspiracy by misappropriating funds amounting to US$3.5 billion, which was allegedly paid to Aabar Investments and US$1.265 billion that was purportedly paid to International Petroleum Investment Company, on May 9, 2017.

Counsel Brendan Navin Siva represented 1MDB, while lawyer Lavinia Kumaraendran appeared for co-defendant Irwan.

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