KUALA LUMPUR: Former 1Malaysia Development Berhad (1MDB) chief executive officer Arul Kanda Kandasamy has told the High Court here that he met fugitive businessman Low Taek Jho, or Jho Low, in Abu Dhabi, four years before he joined the company.
The first defendant was responding to a question from 1MDB's counsel Datuk Lim Chee Wee during the hearing of the US$6.59bil lawsuit against him and former chairman of the board Tan Sri Mohd Irwan Serigar Abdullah.
Lim: During the time you were in the Middle East...You were in, Abu Dhabi, and you would have met many prominent business people and investors... and you met Jho Low while in Abu Dhabi?
Arul Kanda: Yes, it was in 2011.
When asked if Low had made any proposals, Arul Kanda said there was one in particular that involved an investment on Al Maryah Island, a financial district in Abu Dhabi.
"So, it had to do with the property there, or something like that," he said.
Arul Kanda said apart from Low, he also met Khadem Al Qubaisi and Mohammed Badawy al Husseiny in Abu Dhabi, who were subsequently linked to the 1MDB scandal.
Explaining his appointment to 1MDB, Arul Kanda said he was approached by 1MDB's then-former director Ashvin Jethanand Valiram during the latter's visits to Dubai.
"We met at a training course in Malaysia. His wife lives in Dubai. So, whenever he visited the family or was on business trips, we would catch up. Ashvin informed me of his concerns that 1MDB had a large debt which was gearing to distress the projects that were stalled.
"Then I emailed my resume to Ashvin. I was interviewed by the then-chairman of 1MDB, Tan Sri Lodin Wok Kamaruddin, and former director of 1MDB Tan Sri Ismee Ismail. I also had a phone interview with the then-CEO of 1MDB, Datuk Shahrol Azral Ibrahim Halmi.
"The trio asked about me, as I recall. The interviews were more focused on what I had done and my background. They didn't explain in detail about the large debt that 1MDB is facing," said Arul Kanda.
Arul Kanda, who received an offer letter on Dec 18, 2014, said he had conducted due diligence on 1MDB before joining the company and observed that there were negative media articles about it.
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 resumes on Wednesday (Jan 15). – Bernama
