1MDB suit against me was malicious - Irwan

Former 1MDB chairperson Irwan Serigar Abdullah told the Kuala Lumpur High Court today that the sovereign wealth fund had bad intentions when it sued him in May 2021.

Irwan said this was because he was a senior and high-ranking civil servant, holding the post of secretary-general in the Finance Ministry, while at that time, Najib Abdul Razak was the prime minister and also finance minister.

“1MDB’s main target was Najib. However, they wanted to blame someone other than him, and I was an easy target because of my position as the secretary-general of the Finance Ministry.

“1MDB also wanted to sensationalise their case by falsely alleging that I was aligned to Najib and his alleged wrongdoings and that I, somehow, conspired or colluded with him in failing in my duties and responsibility to take the relevant steps to investigate the wrongdoers,” he said.

Irwan said this in his witness statement when testifying as the second defendant during the hearing of the US$6.59 billion lawsuit filed by 1MDB against him and former 1MDB chief executive officer Arul Kanda Kandasamy for breach of trust and conspiracy.

Irwan, who was former Treasury secretary-general, said the suit was also clearly a selective prosecution and was done only to bring disrepute against him.

He said this was clear as he had resigned in 2018, and it was only three years later, in 2021, when the then government had changed hands after the 14th general election that the suit was filed against him.

He said that at no point in time from May 2018 till May 2021 was a demand issued against him or was he asked to answer any allegations or given a chance to explain matters belatedly raised against him.

“Their conduct of bad faith is further shown when they filed this claim for alleged breach of duties as member of the board but yet, chose not to include the remaining members of the board at that material time, namely Kamal Ali and Norazman Ayob despite being aware that all decisions were collective decisions and none of the allegations made was a decision that I made on my own accord or attempted to push through without the consensus and approval of the entire board,” he said.

Irwan said that as a result of the lawsuit, his reputation and credibility had been tarnished.

“I am subject to ridicule and having to defend myself constantly. As a result, it is very difficult for me to continue to hold certain directorships as people are sceptical and weary of the allegations that have been made against me. Apart from that, I had to incur legal expenses in appointing solicitors to defend me,” he said.

The hearing before judge Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on May 19.

In May 2021, 1MDB sued Irwan and Arul Kanda, accusing them of breach of trust and conspiracy, which led to losses of US$1.83 billion, linked to the company’s investment in 1MDB-Petrosaudi Ltd, which was subsequently converted into the Brazen Sky Limited investment, purportedly 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 further alleged that Irwan conspired with Arul Kanda to extend his employment agreement, resulting in a payment of RM2,905,200 to Arul Kanda, all while disregarding the company’s interests, which ultimately led to financial losses and damages.

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

- Bernama

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