Kuala lumpur: 1Malaysia Development Berhad (1MDB) and its former chief financial officer (CFO) Radhi Mohamad have reached an agreement to withdraw the USD5.64 billion civil suit against him. Both parties have consented to a court order to formally drop the case.

According to BERNAMA News Agency, 1MDB counsel Lee Shih confirmed that an agreement on the terms of the consent order had been reached with Radhi, 55, and the plaintiffs, 1MDB and its four subsidiaries. The order will be filed in court today, effectively discontinuing the suit against Radhi with no liberty to refile.

Radhi's lawyer, Datuk M. Reza Hassan, confirmed the arrangement. High Court Judicial Commissioner Mohamad Redzuan Idrus subsequently ruled that Radhi should be removed as a co-defendant in the proceedings. The commissioner expressed appreciation to all parties for resolving the matter.

The trial for the USD5.64 billion suit was in its eighth day, with three witnesses having testified for the plaintiffs. The afternoon session saw former 1MDB CEO, Datuk Shahrol Azral Ibrahim Halmi, presenting his witness statement.

The civil suit, filed on May 7, 2021, by 1MDB and its subsidiaries, named several defendants, including former prime minister Datuk Seri Najib Tun Razak and other former 1MDB executives. The suit accused the defendants of breach of trust, breach of statutory duty, abuse of power, and conspiracy to misappropriate 1MDB funds.

The trial is set to resume on Monday.