Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.
The losses, if any, concerning the funds of 1Malaysia Development Board (1MDB) should not be placed solely on the shoulders of one man.
This is what the sovereign fund’s former chairman Tan Sri Irwan Serigar Abdullah is trying to argue in court.
At the Kuala Lumpur High Court yesterday, where 1MDB is pursuing a US$6.59 billion (RM28.56 billion) civil claim against Irwan over decisions made between May 2016 and May 2018, which the company said resulted in significant losses, his lawyers said decisions made during his time at the sovereign wealth fund involved the wider board and senior management, rather than being controlled by the chairman personally.
To support his defence, Irwan is seeking to include former directors Datuk Kamal Ali and Datuk Norazman Ayob, as well as former chief financial officer (CFO) Azmi Tahir, as third parties in the lawsuit.
His lawyers argued that the three individuals were involved in discussions and approvals surrounding major transactions, meaning any responsibility should be shared if the court finds that duties were breached.
Among the transactions being questioned are the Brazen Sky investment, the US$3.5 billion payment to Aabar Investments PJS, the US$1.265 billion settlement with International Petroleum Investment Company (IPIC), and the extension of former CEO Arul Kanda Kandasamy’s employment contract.
Irwan’s lawyer K. Lavinia told the court that the board members had equal voting rights and access to the same information when discussing these matters.
She argued that if the board should have challenged or rejected certain decisions, the responsibility should not be attributed solely to Irwan as the decisions were made collectively.
Lavinia also disputed claims that other directors merely followed Irwan’s instructions, saying board records showed decisions were reached collectively.
Meanwhile, Irwan’s legal team also pointed to former CFO Azmi’s role, arguing that he had a key responsibility to provide accurate and complete information to the board.
They alleged Azmi was aware of certain disputed matters but failed to disclose important details, including payments allegedly made through verbal instructions and issues involving fugitive businessman Low Taek Jho, better known as Jho Low.
Apart from the billions claimed in damages, 1MDB is also seeking RM2.9 million over the extension of Arul Kanda’s employment contract.
The case is part of 1MDB’s wider efforts to recover funds and seek accountability from individuals it alleges contributed to the losses suffered by the sovereign wealth fund.
Lawyers representing Kamal, Norazman and Azmi are expected to present their arguments next.
Share your thoughts with us via TRP’s Facebook, X, Instagram, or Threads.
