Irwan fails in bid to involve six individuals as third parties in 1MDB suit

KUALA LUMPUR: Former 1Malaysia Development Bhd (1MDB) chairman Tan Sri Mohd Irwan Serigar Abdullah has failed in his bid to include six other individuals as third parties in the US$6.59bil (RM28.5bil) lawsuit filed against him by 1MDB.

High Court Commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan granted the application of the six individuals to dismiss the third-party notice filed by Mohd Irwan.

The six individuals are two former board members of 1MDB, Datuk Kamal Mohd Ali and Datuk Seri Norazman Ayob; former chief financial officer Azmi Tahir; former chairman Tan Sri Lodin Wok Kamaruddin; former chairman Datuk Seri Asri Hamidin @ Hamidon; and current chairman Datuk Seri Johan Mahmood Merican.

Azmi’s lawyer, Rahmat Hazlan, stated that the court found there was an inordinate delay by Mohd Irwan in initiating third-party proceedings, given that 1MDB had commenced the lawsuit in 2021.

“The third-party application was filed four months before the trial began. Therefore, it constitutes an abuse of the court process, and the court dismissed Mohd Irwan’s claims against all the third parties,” the lawyer told reporters after the proceedings.

On May 30, Mohd Irwan filed an ex-parte application against the six individuals, seeking indemnity or contribution in the event he is found liable for the lawsuit filed by 1MDB against him and former CEO Arul Kanda Kandasamy.

The lawsuit is set to be heard this coming Monday (Sept 9).

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$1.83bil in losses related to the company’s investment in 1MDB-Petrosaudi Ltd, which 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$3.5bil in company funds paid to Aabar Investments and US$1.265bil paid to International Petroleum Investment Company on May 9, 2017.

1MDB claimed that Mohd Irwan colluded with Arul Kanda to execute 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$6.59bil in damages from both defendants for these violations, and an additional RM2.9mil from Mohd Irwan related to the extension of the employment agreement. – Bernama