Former 1MDB president and CEO Arul Kanda Kandasamy is seeking access to settlement agreements that the US Department of Justice reached with fugitive financier Low Taek Jho, or Jho Low.
Arul filed an affidavit to support his application to access the 2019 and 2024 agreements, saying they were important for his defence in 1MDB’s US$6.59 billion suit against him and former Treasury secretary-general Irwan Serigar Abdullah.
He also applied to obtain the updated statements of accounts concerning funds recovered by Putrajaya, the Treasury and 1MDB from their various settlements and legal actions, The Edge reported.
Arul said the company relied on the DoJ’s forfeitures to claim that the funds had been misused, but failed to reveal the cases involved had been settled.
“The plaintiff should have disclosed these settlement agreements but has clearly suppressed these details as it would have a significant impact on the plaintiff’s case on these issues of liability as well as quantum,” he said.
While the DoJ’s claims showed that some US$700 million had been purportedly diverted to Good Star Ltd, owned by Low, Arul said this was not a fact established in court.
Arul contended that 1MDB and Putrajaya had already recovered the funds being disputed, accusing them of chasing after a “double claim” through the civil suit against him.
“The documents will show that despite knowing of the settlement between the DoJ and Low in 2019, the plaintiff pursued this claim against me in 2021 for the same funds that were recovered by the DOJ.”
Arul’s lawyer Adam Leong informed the Kuala Lumpur High Court today about the affidavit and the application for the documents.
Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan said he would go through the application but expressed his intention to finish the hearing of the lawsuit since only four days of trial were left.
The hearing resumes on Sept 10, when the court will address Arul’s application.
In May 2021, 1MDB filed a lawsuit accusing Arul and former 1MDB chairman Irwan of breach of trust and conspiracy which led to alleged losses of US$1.83 billion, linked to the company’s investment in 1MDB-Petrosaudi Ltd.
1MDB also alleged that the pair misappropriated US$3.5 billion in company funds, which was paid to Aabar Investments, and another US$1.265 billion paid to the International Petroleum Investment Company (IPIC) on May 9, 2017.
1MDB further alleged that Irwan conspired with Arul to extend the latter’s employment agreement, resulting in a payment of RM2,905,200 to Arul in disregard of the company’s interests, leading to financial losses and damages.
The company is seeking US$6.59 billion in damages from the duo and an additional RM2.9 million from Irwan related to the extension of the employment agreement.
Arul’s defence is that he left it to the police, Malaysian Anti-Corruption Commission, national audit department, and the Public Accounts Committee to investigate wrongdoings in the company.
He said his role as CEO was to implement a rationalisation plan aimed at turning the company around, settling its existing debts and kick-starting stalled projects, including Bandar Malaysia and the TRX Development.
Irwan, who was appointed 1MDB chairman by the Minister of Finance (Incorporated) in May 2016, said he was appointed to specifically steer the company through the rationalisation plan.
