Irwan, who was 1MDB’s chairman between May 2016 and May 2018, said he was an easy target as he was then a senior high-ranking civil servant in the finance ministry.

Najib had doubled up as finance minister, a position he held from 2009 until Barisan Nasional lost power after the 14th general election in 2018.

“It is clear that 1MDB had bad intentions in filing this claim,” Irwan said in his witness statement as to why he had filed a counterclaim against the government-linked company.

Testifying in his defence to the 1MDB suit, he said the company wanted to sensationalise its case by falsely alleging that he had colluded with Najib in failing to investigate those who had siphoned funds from the state investor.

“The filing of the claim only against me is selective prosecution and was done to bring disrepute to me,” he said.

Irwan, 68, said 1MDB’s conduct of bad faith was shown when it filed the claim against him for alleged breach of duties as a member of 1MDB’s board but chose to exclude the remaining members of the board at that material time – Kamal Ali and Norazman Ayob.

He said both were aware that all decisions were made collectively.

Irwan said he was also made aware that 1MDB had initially filed another suit against the previous board members, some senior management staff and Najib over, among others, the same loss of billions of ringgit in payments to Aabar Investments and Brazen Sky Investment.

However, for reasons best known to 1MDB, he said the company withdrew the action against the then directors Che Lodin Wok Kamaruddin, Ismee Ismail, Ong Gim Huat, Ashvin Jethanand Valiram, Shahrol Azral Ibrahim Halmi, Hazem Abd Rahman and former chief financial officer Azmi Tahir.

“Later, I realised from media reports that some of them were called to give evidence in the criminal trial against Najib,” he said.

Irwan said the action filed by 1MDB appeared to be a political game, making him a scapegoat for the wrongdoings of others.

“As a result of this action filed against me, I lost my reputation and my credibility has been tarnished.

“I am subjected to ridicule and have to defend myself constantly.

“It is now very difficult for me to continue holding certain directorships as people are sceptical and wary of the allegations that have been made against me,” he added.

In May 2021, 1MDB filed a lawsuit accusing former 1MDB CEO Arul Kanda and Irwan of breach of trust and conspiracy, which led to losses of US$1.83 billion, linked to the company’s investment in 1MDB-Petrosaudi Ltd.

The funds were said to have been converted into a Brazen Sky Ltd investment and were purportedly recoverable from the Bridge Global Fund.

1MDB also alleged that the pair 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 further alleged that Irwan conspired with Arul to extend his (Arul’s) employment agreement, resulting in a payment of RM2,905,200 to the latter, all the while disregarding the company’s interests, which ultimately led to financial losses and damages.

The company is seeking US$6.59 billion in damages from both defendants and an additional RM2.9 million from Irwan related to the extension of the employment agreement.

Arul’s defence is that he left it to the police, the Malaysian Anti-Corruption Commission, the national audit department and Parliament’s Public Accounts Committee to investigate wrongdoings in the company.

He said his role as CEO was to implement a rationalisation plan aimed at turning the company around, settling its existing debts, and kick-starting stalled projects – including Bandar Malaysia and TRX Development.

Irwan, who was appointed 1MDB chairman by Minister of Finance Inc in May 2016, said he was appointed to specifically steer 1MDB through the rationalisation plan.

He has also brought in Kamal, Norazman and Azmi Tahir as third parties in the company’s suit against him.

Lawyers Sanjay Mohan and Adam Lee appeared for Arul, while counsel Lavinia Kumaraendran and Mavin Thillainathan represented Irwan. Counsel Lim Chee Wee, Brendan Navin Siva and Raphael Kok are appearing for 1MDB.

The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan has been adjourned to May 19.