Kuala Lumpur: Former chief executive officer of 1Malaysia Development Berhad (1MDB), Arul Kanda Kandasamy, told the High Court here today that he had no personal knowledge of the company's funds being used to purchase jewellery worth USD1.3 million for Datin Seri Rosmah Mansor.
According to BERNAMA News Agency, Arul Kanda made this statement when 1MDB's counsel, Raphael Kok Chi Ren, referred him to the United States Department of Justice (DOJ)'s complaint from June 2017 during the trial of 1MDB's USD6.59 billion lawsuit against him and former chairman Tan Sri Mohd Irwan Serigar Abdullah. Kok stated that the DOJ's complaint indicated funds from Blackrock Commodities (Global) Limited were used for the purchase of jewellery for Datuk Seri Najib Tun Razak's wife, Datin Seri Rosmah. Arul Kanda responded, acknowledging the DOJ's claim but reiterated his lack of personal knowledge on the matter.
The DOJ's complaint outlined that the funds were utilized to buy 27 assorted gold necklaces and bracelets valued at USD1.3 million. Arul Kanda, as the first defendant, informed the court that the same funds were also used to acquire a luxury yacht and real estate, including property registered under Kassem Dean, the husband of singer Alicia Keys.
When questioned by Kok about whether witnesses knew that fugitive financier Low Taek Jho, also known as Jho Low, and his associate Eric Tan were beneficial owners of more than USD200 million deposited in bank accounts, Arul Kanda confirmed his agreement with the details in the DOJ's complaint.
In May 2021, 1MDB initiated a lawsuit against Arul Kanda and Mohd Irwan, accusing them of breach of trust and conspiracy, causing losses of USD1.83 billion related to the company's investment in 1MDB-Petrosaudi Ltd, later converted into the Brazen Sky Limited investment, and allegedly recoverable from the Bridge Global Fund. The company also alleged the misappropriation of USD3.5 billion paid to Aabar Investments and USD1.265 billion to International Petroleum Investment Company on May 9, 2017.
Additionally, 1MDB accused Mohd Irwan of conspiring with Arul Kanda to extend his employment agreement, which led to a payment of RM2,905,200 to Arul Kanda, allegedly neglecting the company's interests and resulting in financial losses. Consequently, 1MDB is seeking USD6.59 billion in damages from both defendants and an extra RM2.9 million from Mohd Irwan concerning the employment agreement extension.
The hearing before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan is set to continue tomorrow.