Arul Kanda Denies Knowledge of 1MDB Funds Used for US$1.3M Jewellery Purchase for Rosmah"

KUALA LUMPUR — Former 1MDB CEO Arul Kanda Kandasamy testified in the High Court today that he had no personal knowledge of 1MDB funds being used to buy US$1.3 million worth of jewellery for Datin Seri Rosmah Mansor.

The statement came during the ongoing trial in 1MDB’s US$6.59 billion lawsuit against him and former chairman Tan Sri Mohd Irwan Serigar Abdullah. Arul Kanda was responding to 1MDB’s counsel Raphael Kok Chi Ren, who referred to a 2017 US Department of Justice (DOJ) complaint, which detailed how funds from Blackrock Commodities were used for the jewellery purchase.

“I don’t have personal knowledge,” Arul Kanda said in court, referring to the DOJ’s claim that the funds were used to buy 27 pieces of gold jewellery for Rosmah.

In his testimony, Arul Kanda also confirmed that the same funds were used for other high-value purchases, including a luxury yacht and real estate. He agreed with the DOJ’s allegations regarding fugitive financier Jho Low’s involvement in the misappropriation of over US$200 million in 1MDB funds.

1MDB’s lawsuit claims the two defendants, Arul Kanda and Mohd Irwan, are responsible for breaching trust and conspiracy, causing the company to lose US$1.83 billion. The suit also alleges that the pair misappropriated over US$4.8 billion through improper payments to Aabar Investments and IPIC.

1MDB is seeking US$6.59 billion in damages from both men, along with an additional RM2.9 million from Mohd Irwan related to the extension of Arul Kanda’s employment contract.

The trial continues today before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.