1MDB’s bid to have joint trial against ex-bosses rejected

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) failed to have its US$6.59bil suit against its former top bosses to be heard jointly with a different suit before another High Court judge.

High Court Judicial Commissioner (JC) Raja Ahmad Mohzanuddin Shah Raja Mohzan dismissed 1MDB’s application for the joint trial and ordered the company to pay costs of RM4,000 each to its former chief executive officer Arul Kanda Kandasamy and former chairman Tan Sri Mohd Irwan Serigar Abdullah.

Last year, 1MDB applied to have the two separate suits heard before one judge, on grounds that the merits and facts of the two cases are similar.

The second suit, filed in 2022, involves seeking US$8bil from former prime minister Datuk Seri Najib Tun Razak and seven others.

This suit is heard before High Court judge Justice Atan Mustaffa Yussof Ahmad.

Speaking to reporters after the proceedings in chambers, Mohd Irwan’s counsel Lavinia Kumaraendran said that since the application was rejected, the trial of the first suit will proceed in September, Bernama reported.

In the first suit filed in May 2021, 1MDB claimed that Arul Kanda and Mohd Irwan had committed an alleged breach of trust and conspiracy which caused 1MDB to suffer losses amounting to US$1.83bil, in relation to its investment in 1MDB-Petrosaudi Ltd, which was converted into the alleged Brazen Sky Limited investment, said to be found in the Bridge Global Fund.

1MDB also claimed that Arul Kanda and Mohd Irwan committed a breach of trust and conspiracy by misappropriating 1MDB’s funds, amounting to US$3.5bil paid to Aabar Investments and US$1.265bil paid to International Petroleum Investment Company (IPIC) on May 9, 2017.

1MDB alleged that Mohd Irwan also conspired with Arul Kanda to cause the company to implement the Employment Extension Agreement and make a substantial payment of RM2,905,200 to Arul Kanda, causing the company to suffer losses and damage.

1MDB is demanding that the two defendants pay US$6.59bil for the breach and Mohd Irwan to pay an additional RM2.9mil in relation to the Employment Extension Agreement.

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court , 1MDB , transfer , suit , Najib Razak , Arul Kanda , Mohd Irwan


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