1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy is mulling legal action against Finance Minister Lim Guan Eng.
In his statement (READ HERE), the 1MDB CEO said it was unfair for Lim to issue a public statement that did not accurately represent how the questions were put and answered.
Arul has since ought legal advice from his lawyers to advise him on his options.
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy is mulling legal action against Finance Minister Lim Guan Eng.
In a statement today, Arul Kanda said he denied Lim’s potentially defamatory and personal attacks against him.
“Therefore, in my personal capacity, not in relation to my employment and specifically only in relation to his statement, I have sought legal advice from my lawyers to advise me on my options,” he said.
Lim yesterday summoned Arul Kanda for a meeting to establish the status of the investment company’s finances, specifically on its ability to repay its debts.
During the meeting, Lim asked what had happened to the US$940 million “investment” units held with BSI Bank in Singapore and US$1.56 billion worth of overseas investment funds belonging to 1MDB Global Investments Ltd.
These, Lim had said, collectively amounted to RM9.8 billion, which if redeemed would be more than sufficient to meet 1MDB financial obligations for the next few years.
Following the meeting, Lim had claimed that Arul Kanda was clueless whether the collective RM9.8 billion investment was real or not.
“I have found Arul to be utterly dishonest and preposterous. Prior to the change in government, he toured the country preaching 1MBD’s financial viability and soundness of investments,” Lim was quoted as saying.
“Today, Arul is singing a completely different tune from the songs he sang to the Public Accounts Committee as recorded in the Hansard.
“I have immediately instructed MOF legal counsels to review Arul’s position as 1MDB president,” Lim had said.
Arul Kanda, in his statement, said it was unfair for Lim to issue a public statement that did not accurately represent how the questions were put and answered.
“The circumstances I was in and the context of my answers were conveniently left out such that it produces a false impression and put me in a bad light.”
Arul Kanda said during the meeting, he answered Lim’s questions truthfully and to the best of his recollection.
He, however, said he answered without the benefit of having any supporting documents.
“I therefore answered all the questions as best I could, truthfully and to the best of my knowledge, based on my recollection of company records, my personal knowledge (or lack thereof), and my recollection of information provided by officers in the company.”
Arul Kanda said he only joined 1MDB in 2015, which was after the actions of previous management and boards resulted in 1MDB amassing its debt burden, and after many of 1MDB’s projects were in difficulties.
“In short, I came in only after the occurrence of the alleged wrongdoings cited in the PAC Report on 1MDB, the Auditor General Report on 1MDB and the DOJ civil suit,” he added.
Arul Kanda reiterated that multiple domestic authorities conducted and were still conducting investigations on 1MDB.
“Certain issues surrounding the 1MDB fund investments (including those responsible for the original investment and its ongoing management) have been highlighted from 2015, and subsequently updated, not just to the investigative authorities, but also to the Board and Shareholder.
“My focus was and has been on the business rationalisation of the company,” Arul Kanda said.
He added that he would cooperate fully with any ongoing or new investigations on 1MDB-related matters.
Source: NST Online