KUALA LUMPUR (Aug 13):1Malaysia Development Bhd (1MDB) has made a deal with its former chief financial officer (CFO) Radhi Mohamad on Thursday to withdraw its US$5.64 billion civil suit against him, with both parties agreeing to record a consent order in court.

Radhi’s counsel Datuk M Reza Hassan, who is representing Radhi in absentia, agreed when 1MDB’s lead counsel Lee Shih told the court that both parties have come to an agreement on the terms of the consent order and would file it in court on Thursday.

“My Lord, I can confirm that the plaintiffs and the sixth defendant [Radhi] would like to record a consent judgement or consent order today [Thursday],” Lee submitted.

“Under the consent order, the suit against Radhi would be discontinued, with no liberty to file afresh.”

After hearing submissions, High Court Judicial Commissioner Mohamad Redzuan Idrus ruled that the Radhi should be struck out as a co-defendant in the proceedings.

“Much obliged to all the parties for taking the time to settle this matter,” the judge said.

In this civil suit, there were eight defendants, including former prime minister Datuk Seri Najib Razak. The eight are: Najib, 1MDB’s former finance director Terrence Geh Choh Heng, former executive director Casey Tang Keng Chee, former chief investment officer Vincent Beng Huat Koh, Radhi, former investment director Kelvin Tan Kay Jim, former chief investment officer Nik Faisal Ariff Kamil, and former legal counsel Jasmine Loo Ai Swan. 

However, when the trial began earlier this month, Loo’s name was taken out of the defendants list. 1MDB’s counsel stated at the start of the trial that Loo would take the stand as a witness for them in this case and thus her name has been removed as a defendant. 

Out of the remaining six defendants, none is in the country, having been either at large or wanted by the authorities for their roles in the 1MDB saga. However, some of the six have legal representation in this case. 

Vincent Koh is represented by Nur Syafinaz Vani; Kelvin Tan is represented by GK Ganesan; while Najib is represented by his longstanding lawyer Tan Sri Muhammad Shafee Abdullah. The rest have not put forward legal representation. 

At the trial on Thursday, former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi took the stand as a plaintiff witness. 

As Shahrol was reading his prepared witness statement in court, lawyer Shafee raised an objection to one particular part of Shahrol’s witness statement where Shahrol states that fugitive businessman Low Taek Jho (Jho Low) was Najib’s proxy. 

Shafee objected to it, stating that Shahrol’s assertion was merely “hearsay”. 

“I’m objecting to the entire paragraph 20.4, and also to all of his oral testimony that Jho Low was Najib Razak’s proxy.

“Unless he hears this from Najib Razak. But from his oral statement, he gave the impression that Jho Low had claimed as such, and therefore it is hearsay,” Shafee said.

JC Redzuan then found the paragraph to be hearsay and had it expunged from the witness statement. 

1MDB counsel Nathalie Ker told the court that the plaintiffs would file written submissions next week to address Shafee’s objection to Shahrol’s oral testimony about Jho Low acting as a proxy. 

1MDB and its subsidiaries — 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd, and Global Diversified Investment Company Ltd (formerly known as 1MDB Global Investments Ltd) — filed the civil suit on May 7, 2021.

The writ of summons states that the plaintiffs, among other things, accuse the defendants of breach of trust, breach of statutory duty, abuse of power, and conspiracy to misappropriate 1MDB funds.

Hearing continues on Monday.

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