He said it was fine for a government-linked company’s CEO to make public statements on behalf of the company.
“But he cannot speak to cover up matters (related to 1MDB), nor can he attend political events to campaign for the ruling party,” Pua said, in testifying at 1MDB’s lawsuit against Arul and former Treasury secretary-general Irwan Serigar Abdullah for breach of trust and conspiracy.
He also told the court that when Arul appeared before the Public Accounts Committee’s (PAC) hearings in 2015, the latter had “evaded” both his and the other MPs’ questions.
“He promised to provide us with documents (for a subsequent meeting) but never did,” Pua, a former member of the PAC, said.
1MDB claims Arul and Irwan caused it to suffer losses of US$1.83 billion in relation to its investment in 1MDB-Petrosaudi Ltd, which was converted into an investment in Brazen Sky Ltd and then found in the Bridge Global Fund.
The company also claims that Arul and Irwan misappropriated US$3.5 billion in funds paid to Aabar Investments, and US$1.265 billion paid to the International Petroleum Investment Company (IPIC) on May 9, 2017.
It also alleges that Irwan conspired with Arul to cause the company to implement an employment extension agreement, and made a substantial payment of RM2,905,200 to Arul in accordance with it, in disregard of the company’s interests, thus causing it to suffer loss and damage.
The company is seeking US$6.59 billion in damages from the two defendants, and for Irwan to reimburse the company for the payment made under the employment extension agreement.
Earlier today, lawyer K Lavania, representing Irwan, asked Pua whether he knew that 1MDB’s new board of directors, headed by her client in 2016, was appointed for the purpose of restructuring the company and paying off its debts.
She asked Pua whether he knew about meetings held to discuss the sale of land in Ayer Itam, Penang and Bandar Malaysia in Johor to help the company with its debts.
Pua said based on the minutes of the meeting, there were discussions and decisions made on these matters but that the sales were “carried out imperfectly”.
“For Bandar Malaysia, a tender was carried out and a party was selected but they could not complete the transaction.
“On the independent power plants, 1MDB acquired the firms operating them for RM12 billion but only managed to sell them at RM9.5 billion. It was a loss,” he added.
The hearing before Judicial Commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan will continue on Nov 11.
1MDB’s lawyer Brendan Navin Siva said the plaintiff would call two more witnesses.