Arul Kanda Testifies in 1MDB Trial, Denies Calling for Investigations
Kuala Lumpur: Former 1MDB CEO Arul Kanda Kandasamy took the stand in his defence today, denying that he had called for any investigations into four reports published between February and April 2015.
Background
Arul, who was also the group president, testified in the High Court as part of a civil suit brought by 1MDB. The company is seeking damages from Arul and former 1MDB chairman Irwan Serigar Abdullah over alleged breaches of trust and conspiracy.
Cross-Examination
During cross-examination by 1MDB’s counsel, Lim Chee Wee, Arul acknowledged reading reports published in Sarawak Report, The Edge, South China Morning Post, and Euromoney between February and April 2015. However, he denied instructing any investigations or taking any action in response to the reports.
Arul’s Defence
Arul claimed that he left it to the police, the Malaysian Anti-Corruption Commission, the national audit department, and Parliament’s Public Accounts Committee to investigate any wrongdoing in the company. He stated that 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 TRX Development.
Irwan’s Role
Arul also highlighted Irwan’s appointment as chairman by the Minister of Finance Inc in May 2016, with the specific task of steering 1MDB through the rationalisation plan.
Court Proceedings
The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on February 3.
Conclusion
Arul’s testimony sheds light on the alleged actions taken by him and Irwan in their roles at 1MDB. The ongoing trial is expected to reveal more details about the company’s financial dealings and the allegations of breach of trust and conspiracy.
Frequently Asked Questions
Q: What is the purpose of the 1MDB trial?
A: The trial is a civil suit brought by 1MDB against Arul Kanda Kandasamy and Irwan Serigar Abdullah, alleging breaches of trust and conspiracy.
Q: What is the alleged scope of the breaches of trust and conspiracy?
A: The company alleges that the duo 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.
Q: What is the significance of the rationalisation plan implemented by Arul as CEO?
A: The plan aimed to turn the company around, settle its existing debts, and kick-start stalled projects, including Bandar Malaysia and TRX Development.
Q: Who is Irwan Serigar Abdullah?
A: Irwan was appointed chairman of 1MDB by the Minister of Finance Inc in May 2016, with the specific task of steering 1MDB through the rationalisation plan.