1MDB fails in bid to transfer suit against Arul Kanda, Irwan

1MDB was ordered by the High Court to pay RM8,000 in legal costs to Arul Kanda Kandasamy and Irwan Siregar Abdullah following the dismissal of the company’s transfer application today.

KUALA LUMPUR: 1MDB has failed to secure the transfer of its lawsuit against former CEO Arul Kanda Kandasamy and ex-Treasury secretary-general Irwan Serigar Abdullah to another High Court for hearing.

The company had wanted the case to be heard before Justice Atan Mustaffa Yussof Ahmad.

Atan is presently hearing another lawsuit brought by 1MDB against former prime minister Najib Razak and the company’s former CEO Nik Faisal Ariff Kamil for alleged fraudulent misrepresentation, breach of duties, breach of statutory duties and unjust enrichment.

1MDB had contended that both suits are premised on similar facts.

However, lawyer Lavania Kumaraendran, appearing for Irwan, said judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan dismissed 1MDB’s application to transfer the case today.

She said the court also ordered 1MDB to pay costs of RM8,000 to Irwan and Arul Kanda.

“The trial will start on Sept 2,” said Lavania.

In May 2021, 1MDB filed the suit against Arul Kanda and Irwan for allegedly causing the company losses of US$1.83 billion in relation to its investment in 1MDB-Petrosaudi Ltd, which was converted into an investment into Brazen Sky Limited, said to be found in the Bridge Global Fund.

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

It alleges that Irwan also conspired with Arul Kanda to cause the company to implement an employment extension agreement, and make a substantial payment of RM2,905,200 to Arul Kanda in accordance with the agreement, in disregard of the company’s interests, causing it to suffer loss and damage.

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

It also wants an additional RM2.9 million from Irwan in connection with the employment extension agreement.