KUALA LUMPUR (Sept 11): Financial fraud investigator Richard Templeman told the court here on Wednesday that former 1Malaysia Development Bhd (1MDB) CEO Arul Kanda Kandasamy had nothing to do with transactions the company undertook prior to 2014.

During cross examination in the High Court hearing of 1MDB's US$6.59 billion (RM30.91 billion) lawsuit against Arul Kanda, whom 1MDB hired in 2015, and former board chairman Tan Sri Irwan Serigar Abdullah, Arul Kanda’s lawyer Sanjay Mohan asked Templeman about specific transactions and whether his client had anything to do with them.

Templeman was asked about a US$57 million transfer from Red Granite Capital to Alsen Chance. Red Granite’s CEO is Riza Aziz who is the stepson of Datuk Seri Najib Razak.

The monies originated from Good Star Ltd, a company controlled by fugitive financier Low Taek Jho or Jho Low, and the money Red Granite Capital received was actually from bonds raised by 1MDB for the purchase of several power plants.

Templeman was also asked about US$11.5 million in 1MDB funds going from Affinity (another account owned by Jho Low and associates) to Red Granite and a whopping US$1.095 billion transferred from an Aabar Investments PJS Ltd (Aabar BVI) account to a Blackstone account.

From there, these monies were funnelled out into other entities, US$30 million of which ended up in Najib’s personal accounts.

He was also asked about US$472.75 million in funds that went to an account owned by Vasco Investment services, whose beneficial owner was Khadem al-Qubaisi, the head of Abu Dhabi’s state-owned energy company International Petroleum Investment Co or IPIC.

Of that money, Templeman said al-Qubaisi purchased a Gulfstream jet on Dec 31, 2013 for US$65 million among others.

Below is an excerpt of Templeman and Sanjay's exchange: 

Sanjay: Arul Kanda (my client) did not have anything to do with these transactions as it was in 2012?
Templeman: Yes, I agree.

Sanjay: Can I confirm that paragraph 28 of your prepared witness statement, which outlines the Blackstone transfers, does not have anything to do with my client?

Templeman: Yes, I agree.

Sanjay: The money that was transferred out to Vasco, as you have outlined in your witness statement, has nothing to do with my client?

Templeman: Yes, I agree.

Templeman was further asked about his witness statement where he outlined that transfers totalling more than US$383 million were made from the Blackstone account to Alsen Chance's account in 20 separate transactions between May 29, 2012 and Dec 20, 2012.

Of that money, some US$9.6 million was transferred to a company called Pras Michel and PJ 2012 Holdings LLC, which is owned by rapper Prakazrel "Pras" Michel who was charged in the US this year for orchestrating an unregistered, back-channel campaign in 2017 linked to former US president Donald Trump to have investigations related to 1MDB be dropped, among others. See: US charges Jho Low, rapper with back-channel lobbying to drop 1MDB probe, extradite Chinese dissident from US

A sum of US$1.5 million also ended up in Swizz Beats productions Inc, a company owned by Swizz Beatz, an American rapper, producer and songwriter who is the husband of Grammy Award-winning songstress Alicia Keys.

Sanjay asked Templeman if his client had anything to do with these transfers.

Sanjay: All these transfers that took place in 2012, nothing to do with my client, yes?

Templeman: Yes.

At the start of the trial this week, 1MDB’s lawyer Datuk Lim Chee Wee, who read his opening statement in court before High Court Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan, said the trial is to establish to what extent the two individuals have to bear responsibility and liability for their actions and/or omissions in relation to their involvement in the affairs of 1MDB.

Lim said both men had failed to investigate and ascertain the status and background of 1MDB’s various investments and to recover these investments, thereby causing 1MDB to suffer loss and damage.

He said they had failed to “exercise reasonable care, skill and diligence to inquire, investigate and/or ascertain whether there were any wrongdoings by officers of 1MDB in relation to the various transactions entered into by 1MDB”. See: 1MDB wants court to determine if Arul Kanda and Irwan's actions caused 1MDB to suffer billions in losses

Among others, the strategic development company is seeking RM30.91 billion (US$6.59 billion) from the duo as a result of the purported breaches, and the return of the RM2.91 million from Mohd Irwan in relation to an employment extension agreement.
 

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