Irwan fails to include 6 people as third parties in 1MDB suit

Irwan fails to include 6 people as third parties in 1MDB suit

High Court finds there was an inordinate delay by the former 1MDB chairman in initiating the third-party proceedings, given that 1MDB had commenced the suit in 2021.

Former 1MDB chairman Irwan Serigar Abdullah had filed an ex-parte application against the six on May 30, seeking indemnity or contribution in the event he is found liable for the suit. (Bernama pic)
KUALA LUMPUR:
Former 1MDB chairman Irwan Serigar Abdullah today failed in his bid to include six others as third parties in the US$6.59 billion lawsuit filed against him by 1MDB.

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

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

Azmi’s lawyer Rahmat Hazlan, said the High Court found there was an inordinate delay by Irwan in initiating third-party proceedings, given that 1MDB had commenced the suit 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 Irwan’s claims against all the third parties,” the lawyer told reporters after the proceedings.

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

The suit is set to be heard on Monday.

In May 2021, 1MDB filed a suit against Irwan and Arul, accusing them of breach of trust and conspiracy that resulted in US$1.83 billion in losses related to the company’s investment in 1MDB-Petrosaudi Ltd, which was later converted into the Brazen Sky Ltd 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$3.5 billion in company funds paid to Aabar Investments and US$1.265 billion paid to the International Petroleum Investment Company on May 9, 2017.

1MDB claimed that Irwan colluded with Arul to execute an extension of an employment agreement, paying a substantial amount of RM2,905,200 to Arul, disregarding 1MDB’s interests, which resulted in losses and damages to the company.

Consequently, 1MDB is seeking US$6.59 billion in damages from both defendants for these violations, and an additional RM2.9 million from Irwan related to the extension of the employment agreement.

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