Kuala Lumpur: Former 1Malaysia Development Berhad (1MDB) chairman Tan Sri Mohd Irwan Serigar Abdullah testified in the High Court that the sovereign wealth fund’s lawsuit against him, filed in May 2021, was driven by malicious intent.
According to BERNAMA News Agency, Mohd Irwan argued that 1MDB aimed to deflect blame from their primary target, Datuk Seri Najib Tun Razak, by targeting him due to his former role as secretary-general of the Ministry of Finance. Mohd Irwan claimed that 1MDB sought to sensationalize the case by falsely associating him with Najib’s alleged wrongdoings and accusing him of conspiring in the failure to investigate the wrongdoers.
Mohd Irwan, serving as the second defendant alongside former 1MDB CEO Arul Kanda Kandasamy in the USD6.59 billion lawsuit, described the suit as selective prosecution intended to tarnish his reputation. He emphasized that the suit was filed three years after his resignation in 2018, following a change in government after the 14th General Election. During t
his period, no demands or allegations were made against him.
He criticized 1MDB for not including other board members, such as Datuk Kamal Mohd Ali and Datuk Seri Norazman Ayob, in the lawsuit, despite the collective nature of board decisions. Mohd Irwan expressed that the lawsuit had severely damaged his reputation, leading to ridicule and difficulty in maintaining directorships, as well as incurring legal expenses for his defense.
The hearing before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan is set to continue on May 19. In the lawsuit, 1MDB accused Mohd Irwan and Arul Kanda of breach of trust and conspiracy, resulting in USD1.83 billion in losses linked to 1MDB-Petrosaudi Ltd investments. Allegations include the misappropriation of USD3.5 billion to Aabar Investments and USD1.265 billion to International Petroleum Investment Company.
1MDB further alleged that Mohd Irwan and Arul Kanda conspired to extend Arul Kanda’s employment agreement, leading to a RM2,905,200 payment, neglecting the company
‘s interests and causing financial losses. Consequently, 1MDB seeks USD6.59 billion in damages from both defendants, along with an additional RM2.9 million from Mohd Irwan related to the employment agreement extension.