Arul Kanda Denies Knowledge of 1MDB Funds Used for Rosmah Mansor's Jewelry
Former CEO of 1Malaysia Development Berhad (1MDB), Arul Kanda Kandasamy, testified in the High Court today, denying personal knowledge of the alleged use of 1MDB funds to purchase jewelry worth US$1.3 million for Datin Seri Rosmah Mansor, the wife of former Prime Minister Datuk Seri Najib Tun Razak.
Arul Kanda made this statement while responding to questions from 1MDB's legal counsel Raphael Kok Chi Ren during the ongoing trial of the company's US$6.59 billion lawsuit against him and former chairman Tan Sri Mohd Irwan Serigar Abdullah.
Referring to a June 2017 complaint by the United States Department of Justice (DOJ), Kok asked about allegations that money from Blackrock Commodities (Global) Limited had been used to buy jewelry for Rosmah. Arul Kanda replied, That is stated in the DOJ complaint. I don’t have personal knowledge.
The DOJ complaint alleged that funds were used to acquire 27 gold necklaces and bracelets valued at US$1.3 million. Arul Kanda also acknowledged that some of the funds were reportedly used to purchase a luxury yacht and real estate, including a property registered under Kassem Dean, the husband of singer Alicia Keys.
When asked about fugitive financier Low Taek Jho, also known as Jho Low, and his associate Eric Tan being the beneficial owners of over US$200 million deposited in various bank accounts, Arul Kanda confirmed, I agree as stated in the document in the DOJ’s complaint.
The lawsuit filed by 1MDB in May 2021 accuses Arul Kanda and Mohd Irwan of breach of trust and conspiracy. According to 1MDB, these actions resulted in losses amounting to US$1.83 billion tied to investments in 1MDB-Petrosaudi Ltd, which were later converted into investments in Brazen Sky Limited and linked to the Bridge Global Fund.
The company further alleges that the defendants misappropriated US$3.5 billion paid to Aabar Investments and an additional US$1.265 billion to the International Petroleum Investment Company (IPIC) in 2017.
Additionally, 1MDB claims that Mohd Irwan and Arul Kanda conspired to extend Arul Kanda's employment contract, leading to a payment of RM2,905,200 to Arul Kanda. This extension was allegedly carried out without regard for the company’s interests, exacerbating 1MDB’s financial losses.
As a result, 1MDB is seeking damages of US$6.59 billion from the two defendants and an additional RM2.9 million from Mohd Irwan in connection with the employment contract extension.
This case remains a pivotal moment in Malaysia’s ongoing efforts to address the financial fallout from the 1MDB scandal, one of the largest corruption scandals in the world.
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