PUTRAJAYA: Former 1Malaysia Development Berhad (1MDB) chairman Tan Sri Mohd Irwan Serigar Abdullah succeeded in his appeal to include three individuals as third parties in the US$6.59 billion lawsuit filed against him by 1MDB. The Court of Appeal’s three-judged panel comprising Court of Appeal judges Datuk S. Nantha Balan, Datuk Azmi Ariffin, and High Court judge Datuk Ahmad Kamal Md Shahid, overturned a High Court ruling that had struck out Mohd Irwan’s application to bring in the individuals as third parties.
According to BERNAMA News Agency, the court ruled that the High Court judicial commissioner had misdirected himself when he struck out Mohd Irwan’s third-party claim. The three individuals are two former board members of 1MDB, Datuk Kamal Mohd Ali and Datuk Seri Norazman Ayob, and former chief financial officer Azmi Tahir. In allowing Mohd Irwan’s appeal, Judge Nantha Balan stated that there was no inordinate delay on the part of Mohd Irwan to file the third-party proceeding. He was waiting for docume
nts from 1MDB’s solicitors who had initially indicated they would provide the documents but later resiled.
He further added that the delay was largely contributed by 1MDB’s refusal to provide the documents and only doing so after the third-party action was filed, although only some documents were provided. Justice Nantha Balan noted that, given these developments, it could not be said that Mohd Irwan, who left 1MDB without any documents, was guilty of delay. He mentioned that there were many allegations against Azmi, Norazman, and Kamal, who have filed their defenses to the third-party action and have to answer for their respective roles.
Judge Nantha Balan acknowledged that Mohd Irwan’s third-party action would cause delays in the trial of the ongoing 1MDB lawsuit, but deemed it unavoidable due to the complex transactions, voluminous documents, and Board of Directors’ papers and minutes involved, all of which must be thoroughly examined before filing the third-party action. Earlier, on September 6, Judicia
l Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan had granted the application of six individuals, including Kamal, Norazman Ayob, and Azmi Tahir, to strike out the third-party notice filed by Mohd Irwan, ruling that there was an inordinate delay.
The other three individuals included former chairman Tan Sri Lodin Wok Kamaruddin, former chairman Datuk Seri Asri Hamidin @ Hamidon, and current chairman Datuk Seri Johan Mahmood Merican. Mohd Irwan opted not to pursue appeals against these three individuals. On May 30, Mohd Irwan filed an ex-parte application against the six individuals, seeking indemnity or contribution should he be found liable for the lawsuit filed by 1MDB against him and former CEO Arul Kanda Kandasamy. The lawsuit is set to resume hearing on January 13 next year.
In May 2021, 1MDB filed a lawsuit against Mohd Irwan and Arul Kanda, accusing them of breach of trust and conspiracy that resulted in US$1.83 billion in losses related to the company’s investment in 1MDB-Petrosaudi Ltd, w
hich was later converted into the Brazen Sky Limited investment, said to be recoverable from the Bridge Global Fund. 1MDB also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5 billion in company funds paid to Aabar Investments and US$1.265 billion paid to International Petroleum Investment Company on May 9, 2017.
1MDB claimed that Mohd Irwan colluded with Arul Kanda in executing an extension of an employment agreement, paying a substantial amount of RM2,905,200 to Arul Kanda, disregarding 1MDB’s interests, which resulted in losses and damages to the company. Consequently, 1MDB is seeking US$6.59 billion in damages from both defendants for these violations, and an additional RM2.9 million from Mohd Irwan related to the extension of the employment agreement.
Lawyers Lavinia Kumaraendran and Mavin Thillainathan represented Mohd Irwan, while lawyers Wan Aizuddin Wan Mohammed and Rahmat Mohamed Hazlan acted for Azmi, and lawyer Razlan Hadri Zulkifli represented Kam
al and Norazman.