Kuala Lumpur: Arul Kanda Kandasamy told the High Court today that he met fugitive financier Low Taek Jho (Jho Low) prior to joining 1MDB in 2015.
Testifying in his defence to a civil suit brought by 1MDB, Arul said he also met Aabar chairman Khadem Al Qubaisi and its CEO, Mohammed Badawy al Hussein, at around the same time.
He said he was working for a bank in Abu Dhabi at the time.
The trio, together with former prime minister Najib Razak and his stepson Riza Aziz are alleged to have siphoned out 1MDB funds via various bogus offshore entities.
According to media reports, Khadem and Badawy were convicted and jailed in 2019 for financial crimes unrelated to 1MDB.
Cross-examined by lawyer Lim Chee Wee, representing 1MDB, Arul said he met Low several times in the course of work.
Lim: Did he put up any proposal?
Arul: Yes, about investment on Al Maryah Island, a financial district in Abu Dhabi.
Lim: Did you meet Khadem and Mohammed (Badawy)?
Arul: Yes, while working for ADCB (a bank) in Abu Dhabi.
Earlier, Arul said he graduated with a law degree from the London School of Economics and possesses a master’s in law from University College London.
He said he had previously worked as an investment banker in London and then in the Middle East, specialising in the financial restructuring of heavily indebted companies.
Arul said former 1MDB director Ashvin Valiram used to come regularly to Dubai as Ashvin’s wife was from this city.
“Sometime in 2014, he wanted to consider a role for me in the company. I then did some due diligence on 1MDB but there were many negative reports,” he said.
He said Ashvin did not explain in detail 1MDB’s financial status except that the company had taken out big loans.
Arul said he was subsequently interviewed by three former 1MDB officials – chairman Lodin Wok Kamaruddin, director Ismee Ismail and CEO Shahrol Azral Ibrahim Halmi.
“There were two face-to-face interviews, and only a conversation via telephone with Shahrol,” he added.
Arul was appointed 1MDB director in January 2015 and redesignated as CEO and group president the following year.
In May 2021, 1MDB filed a lawsuit accusing Arul and former 1MDB chairman Irwan Serigar Abdullah 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.
The funds were said to have been converted into a Brazen Sky Ltd investment, and were purportedly recoverable from the Bridge Global Fund.
1MDB also alleges 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 alleges that Irwan conspired with Arul to extend his 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.
His defence is that he left it to the police, the Malaysian Anti-Corruption Commission, the national audit department and Parliament’s Public Accounts Committee to probe 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 TRX Development.
Irwan, who was appointed chairman by the Minister of Finance Inc in May 2016, said he was appointed to specifically steer 1MDB through the rationalisation plan.
Lawyers Sanjay Mohan and Adam Lee appeared for Arul, while counsels Lavinia Kumaraendran and Mavin Thillainathan represented Irwan.
The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes tomorrow.
