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KUALA LUMPUR: The High Court was told on Tuesday (Sept 10) that the Public Accounts Committee (PAC) did not place the blame for the mismanagement of 1Malaysia Development Berhad (1MDB) on its former president and chief executive officer (CEO) Arul Kanda Kandasamy (pic) in 2016.
United Kingdom-based financial fraud investigator Richard Templeman admitted that he and PAC arrived at different conclusions regarding the 1MDB financial crisis. He blamed Arul Kanda, while PAC blamed 1MDB's former chief executive officer, Datuk Shahrol Azral Ibrahim Halmi.
Templeman was responding to cross-examination by Arul Kanda's counsel, Sanjay Mohan, in 1MDB's US$6.59bil lawsuit against Arul Kanda and former treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah.
Sanjay: Mr Templeman, look at the PAC report and see what it says. Do you agree it is a very different conclusion from what you are saying?
Templeman: No, I do not think I can comment on that.
Sanjay: Mr Templeman, I'm sorry but you are a witness in this case. You have made an allegation against my client. You should have read the report before coming to testify. Please look at the report again and answer my question. Your finding is different than the PAC finding in 2016?
Templeman: Yes.
Templeman, who has 24 years of experience investigating complex fraud and financial crimes, also confirmed that Arul Kanda’s name was never mentioned in the United States Department of Justice’s civil lawsuit on July 21, 2016.
In 2016, the PAC released a 106-page report concluding that 1MDB's financial problems were primarily due to mismanagement by Shahrol Azral, who helmed the fund from 2009 to 2013.
After Shahrol Azral's tenure, Mohd Hazem Abd Rahman briefly served as 1MDB’s CEO before Arul Kanda took over from early 2015 until mid-2018.
In May 2021, 1MDB filed a lawsuit against Mohd Irwan and Arul Kanda over an alleged breach of trust and conspiracy that resulted in US$1.83bil in losses related to the company's investment in 1MDB-Petrosaudi Ltd.
1MDB-Petrosaudi Ltd was later converted into the Brazen Sky Limited investment, which was said to be recoverable from the Bridge Global Fund.
1MDB also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5bil in company funds paid to Aabar Investments and US$1.265bil paid to International Petroleum Investment Company on May 9, 2017.
1MDB is seeking US$6.59bil in damages from both defendants for these violations and an additional RM2.9mil from Mohd Irwan related to extending an employment agreement.
The trial before Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes on Wednesday (Sept 10). – Bernama
