Why is Arul Kanda claiming RM56.7 million from 1MDB?

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Arul Kanda Seeks RM56.7 Million Over Alleged Wrongful Termination

Arul Kanda Kandasamy, the former president and chief executive officer of 1Malaysia Development Berhad (1MDB), is pursuing a counterclaim of RM56.7 million due to allegations of wrongful termination of his employment contract. This claim includes demands for lost income, a significant bonus, and substantial special damages, stemming from the termination of his extended contract in June 2018.
Claim for Lost Income and Bonus

Arul Kanda's counterclaim specifies RM202,600 for loss of income, representing salary payments for May and June 2018. Additionally, he is seeking RM2.5 million as an ex-gratia bonus. These amounts were allegedly due under an Extended Employment Agreement signed on February 23, 2018, which stipulated a monthly salary of RM101,300 until June 30, 2018, and the aforementioned bonus.
Special Damages for Future Loss of Income

A substantial portion of the counterclaim, RM54 million, is sought as special damages for the alleged loss of income from June 2019 through to 2036. This figure represents the projected income Arul Kanda believes he would have earned had his contract not been terminated prematurely.
Allegations of Wrongful Termination

Arul Kanda contends that 1MDB wrongfully terminated his contract on June 25, 2018, without any basis or investigation into his conduct. He asserts that this termination was orchestrated to avoid fulfilling the company's obligations under the Extended Employment Agreement, specifically the payment of salary for May and June 2018 and the RM2.5 million bonus. He also points to allegations made by the then finance minister, Lim Guan Eng, which he claims were made without due process.
Context of Previous Lawsuits

This counterclaim arises within the broader legal context of lawsuits filed by 1MDB against Arul Kanda and former chairman Tan Sri Mohd Irwan Serigar Abdullah. In May 2021, 1MDB sued them for alleged breach of trust and conspiracy, claiming losses of US$1.83 billion related to investments. 1MDB also alleged that Arul Kanda and Mohd Irwan misappropriated substantial funds, including US$3.5 billion and US$1.265 billion, and that Mohd Irwan conspired with Arul Kanda to enter the employment extension agreement, disregarding 1MDB's interests.

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Why is Arul Kanda claiming RM56.7 million from 1MDB?

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