Arul Kanda Kandasamy’s legal team contended that a UK-based financial fraud investigator made speculative and baseless allegations against the ex-1MDB CEO.

However, Richard Templeman is sticking to his claim that Arul (above, left) could have found out about alleged wrongful 1MDB transactions if the ex-CEO had investigated.

Arul’s counsel Sanjay Mohan and 1MDB’s witness verbally clashed during today’s Kuala Lumpur High Court hearing of the Malaysian sovereign wealth fund’s US$1.83 billion (RM8.05 billion) lawsuit against the ex-CEO.

The civil action also targeted former Treasury secretary-general Mohd Irwan Serigar Abdullah, who used to be a director of 1MDB.

Sanjay was referring to several parts of Templeman’s supplementary witness statement which contended Arul could have discovered several improper transactions if he had investigated.

Among these transactions were 1MDB’s over a billion dollars of investment in Brazen Sky Limited, which was done prior to Arul taking over the CEO post in January 2015.

Sanjay: The supplementary witness statement where you alleged or suggested that my client may have discovered certain information is speculative and unsubstantiated.

Templeman: I disagree.

Sanjay: When you made this supplementary witness statement (this year), you have not considered all documents produced in this trial?

Templeman: Yes.

Sanjay: Your allegations or comments are premised on half-truths and (only) some documents and the perspective on what only the plaintiff (1MDB) is saying.

Templeman: I disagree.

Sanjay: You did not give a balanced view of things, and your views are unfounded.

Templeman: I disagree.

However, the UK fraud financial investigator conceded that Arul was not the CEO when several suspicious transactions involving billions of ringgit of 1MDB funds took place between 2009 and 2014.

Shahrol Azral Ibrahim Halmi held the CEO post from 2009 to 2013, with Mohd Hazem Abd Rahman taking over until early 2015. Arul then came on board as CEO until 2018.

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

Former 1MDB CEO Shahrol Azral Ibrahim Halmi

Alleged breach of trust, conspiracy

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

1MDB claimed the losses arose following its US$1 billion investment in a joint venture with Petrosaudi International Limited (PSI) in 2009.

The fund 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.

Incidentally, 1MDB also has a separate civil action against former prime minister Najib Abdul Razak.

Najib is currently serving a six-year jail sentence over a criminal case involving RM42 million of funds from SRC International, a former subsidiary of 1MDB.

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

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