1MDB fails to have new judge hear suit against Arul Kanda, Irwan Serigar

The Kuala Lumpur High Court this afternoon denied 1MDB’s application to have a new civil court judge preside over its US$1.83 billion (RM8.05 billion) suit against its former CEO and a former Treasury secretary-general.

High Court judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan dismissed 1MDB's bid to have judge Atan Mustaffa Yusoff Ahmad hear the civil action involving alleged breach of trust and conspiracy.

According to court filings, 1MDB sought the transfer because Atan is also the presiding judge for its US$8 billion lawsuit against former prime minister Najib Abdul Razak.

However, the defendants - former 1MDB CEO Arul Kanda Kandasamy and former Treasury secretary-general Mohd Irwan Serigar Abdullah - opposed the transfer, contending that the suit against them does not involve the same issues as 1MDB’s action against Najib.

Irwan’s counsel Lavinia Kumaraendran confirmed the outcome of today’s proceedings in Ahmad’s chambers.

She told the media that Ahmad also ordered 1MDB to pay RM8,000 in costs to Arul Kanda (above, left) and Irwan.

The trial of 1MDB’s suit against the two is set for September this year.

Alleged breach of trust, conspiracy

In May 2021, 1MDB filed the suit against Arul Kanda and Irwan seeking compensation for its losses.

The loss was over its investment in the joint venture 1MDB-Petrosaudi Limited, which was converted into the purported Brazen Sky Limited investment that is claimed to be found in the Bridge Global Fund.

1MDB claimed that the duo committed a breach of trust and conspiracy by misappropriating funds amounting to US$3.5 billion (RM15.4 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.

Former finance minister Najib is serving a six-year jail sentence over a separate RM42 million corruption case linked to SRC International, a former subsidiary of 1MDB which later became fully owned by the Minister of Finance Incorporated (MOF Inc).

Lawyer Sanjay Mohan acted for Arul Kanda while plaintiff 1MDB was represented by counsel Brendan Navin Siva.