KUALA LUMPUR: Former chief executive officer of 1Malaysia Development Berhad (1MDB), Arul Kanda Kandasamy told the High Court here on Tuesday (Jan 14) that he had no personal knowledge that monies from the company’s funds were used to buy jewellery worth US$1.3mil for Datin Seri Rosmah Mansor.
Arul Kanda said this when 1MDB’s counsel Raphael Kok Chi Ren referred to him the United States Department of Justice (DOJ)’s complaint in June 2017 during the trial of 1MDB’s US$6.59bil lawsuit against him and former chairman of the board Tan Sri Mohd Irwan Serigar Abdullah.
Kok: Based on the DOJ’s complaint, monies from Blackrock Commodities (Global) Limited were used to purchase jewellery for Datuk Seri Najib Tun Razak’s wife Datin Seri Rosmah.
Arul Kanda: That is stated in the DOJ complaint. I don't have personal knowledge.
According to the DOJ’s complaint, the monies were used to purchase 27 assorted gold necklaces and bracelets worth US$1.3mil.
Arul Kanda, who is the first defendant, told the court that the money was used to purchase a luxury yacht and real estate, one of which was registered under Kassem Dean, the husband of singer Alicia Keys.
Asked by Kok whether the witnesses had knowledge that fugitive financier Low Taek Jho or Jho Low and his associates Eric Tan were beneficial owners of monies over US$200mil deposited in bank accounts, Arul Kanda said, "I agree as stated in the document in the DOC’s complaint".
In May 2021, 1MDB filed a lawsuit against the two individuals, accusing them of breach of trust and conspiracy, which led to losses of US$1.83bil, linked to the company’s investment in 1MDB-Petrosaudi Ltd, which was subsequently converted into the Brazen Sky Limited investment, purportedly 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 further alleged that Mohd Irwan conspired with Arul Kanda to extend his employment agreement, resulting in a payment of RM2,905,200 to Arul Kanda, all while disregarding the company’s interests, which ultimately led to financial losses and damages.
Consequently, 1MDB is seeking US$6.59bil in damages from both defendants and an additional RM2.9mil from Mohd Irwan related to the extension of the employment agreement.
The hearing before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on Wednesday (Jan 15). – Bernama
