I didn’t label Arul Kanda ‘negligent’, fraud investigator tells court

 

1MDB is suing former chairman Irwan Serigar Abdullah (left) and ex-CEO Arul Kanda Kandasamy for loss and damage suffered, alleging breach of trust, conspiracy and misappropriation of funds.

KUALA LUMPUR: 

A financial fraud investigator has denied accusing former 1MDB CEO Arul Kanda Kandasamy of being negligent in the discharge of his duties when managing the company’s affairs.

However, Richard Templeman, an investigation director at risk and financial advisory firm Kroll Advisory Ltd, told the High Court that Arul should have discovered and probed suspicious investments the company had made into Brazen Sky Ltd.

He also said Arul should have investigated the company’s use of funds obtained from two Deutsche Bank loans.

Templeman said as 1MDB CEO, Arul should have known that part of the US$1.225 billion loan sum had been transferred to Aabar Investment PJS Limited, a shell company incorporated in the British Virgin Islands.

Asked by Arul’s lawyer Sanjay Mohan whether his assessment of matters within Arul’s knowledge was merely a personal opinion and based on half-truths, Templeman disagreed.

But you did not have the benefit of reviewing all the trial documents,

 Sanjay said, to which Templeman answered in the affirmative.

The witness was testifying at the trial of a suit brought by 1MDB against Arul and former Treasury secretary-general Irwan Serigar Abdullah for breach of trust and conspiracy.

Filed in May 2021, the suit seeks to recover losses of US$1.83 billion in relation to its investment in 1MDB-Petrosaudi Ltd, which was converted into an investment into Brazen Sky, said to be found in the Bridge Global Fund.

1MDB also claims that Arul and Irwan misappropriated US$3.5 billion in funds paid to Aabar Investments, and US$1.265 billion paid to the International Petroleum Investment Company (IPIC) on May 9, 2017.

The company also alleges that Irwan conspired with Arul to cause the company to implement an employment extension agreement, under which a substantial payment of RM2,905,200 was made to Arul in disregard of the company’s interests, thus giving rise to loss and damage.

The company is demanding that the duo pay US$6.59 billion in damages.

It also wants Irwan to reimburse the company for the sum paid in connection with the employment extension agreement.

In his testimony, Templeman told the court he was given sight of 1MDB and SRC International Sdn Bhd’s documents by the companies’ liquidators to identify the money trail.

Responding to a question by lawyer Lavania Kumaraendran, representing Irwan, Templeman said he did not interview the former directors and employees of 1MDB in the course of his investigations.

Asked whether he knew that Irwan had assumed the 1MDB chairman’s position as part of the government’s rationalisation plan for the company, Templeman answered in the negative.

The hearing continues before Judicial Commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan on Thursday. - FMT