Crime & Courts

High Court rejects 1MDB's request for new judge in US$1.83 billion lawsuit

KUALA LUMPUR: The High Court today dismissed 1Malaysia Development Bhd's (1MDB) application to have a new judge to preside over the US$1.83 billion lawsuit against its former top brass Tan Sri Mohd Irwan Serigar Abdullah and Arul Kanda Kandasamy.

Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan made the ruling this afternoon.

Mohd Irwan and Arul Kanda were former 1MDB advisers and chief executive officers, respectively.

The sovereign wealth fund is seeking judge Atan Mustaffa Yussof Ahmad to hear the case.

Atan is the presiding judge in the 1MDB lawsuit against its former general counsel Jasmine Loo Ai Swan, seeking to recover US$8 millions of its funds.

In May 2021, 1MDB filed a suit against Arul Kanda and Mohd Irwan over an alleged breach of trust and conspiracy, causing 1MDB to suffer losses amounting to US$1.83 billion, in relation to its investment in 1MDB-Petrosaudi Ltd.

1MDB also claimed that the two defendants committed a breach of trust and conspiracy by misappropriating 1MDB money, amounting to US$3.5 billion, paid to Aabar Investments and US$1.265 billion, paid to International Petroleum Investment Company (IPIC), on May 9, 2017.

1MDB alleged that Mohd Irwan also conspired with Arul Kanda to cause the company to implement the Employment Extension Agreement, and made a substantial payment of RM2,905,200 to Arul Kanda as per the agreement, regardless of 1MDB's interests, causing the company to suffer losses and damages.

In this regard, 1MDB, among others, demanded that the two defendants pay US$6.59 billion for the breach and an additional RM2.9 million from Mohd Irwan in relation to the Employment Extension Agreement.

Mohd Irwan and Arul Kanda filed separate applications to strike out the suit on Feb 18 and June 2 last year, respectively.

Most Popular
Related Article
Says Stories