Amanah Raya denies extending RM2 billion loan to 1MDB

Amanah Raya Berhad chairman Datuk Seri Reezal Merican Naina Merican is denying that the company extended a loan to troubled state investor 1Malaysia Development Berhad. – ARB screenshot, June 10, 2015.

Amanah Raya Berhad (ARB) chairman Datuk Seri Reezal Merican Naina Merican has denied the trustee company had ever extended any loan to troubled 1Malaysia Development Berhad (1MBD) as alleged by DAP Tanjong MP Ng Wei Aik today.

He said Ng made an unfounded allegation against ARB and him on the alleged loan purportedly made to 1MDB as soon as he assumed the ARB chairmanship.

"I deny categorically that ARB had ever extended any loan to 1MBD for the amount of RM2 billion as alleged or any other amount for that matter," he said in a statement.

Reezal also denied that, upon assuming the ARB chairmanship, he had at any time approved the alleged RM2 billion loan or any other loans with an annual interest rate of 4% or otherwise.

"The allegation is unfounded and made with the malicious intent to question my integrity as an MP and the chairman of ARB," said Reezal, who is also the Kepala Batas MP.

"There was no application for loan from 1MDB in the first place," he added.

Ng, in citing "highly confidential information" from "insider sources", said ARB released the RM2 billion to 1MDB.

He said this happened after Reezal was appointed as the trustee company chairman on January 1 last year.

He also alleged that the loan carried an annual interest rate of 4%, which was inked via an "IOU bill" issued by ARB.

Reezal also said that he was surprised that Ng, as a fellow lawmaker, had opted to rely on the so-called "highly confidential information" from "insider sources" instead of verifying with him about the allegation.

"The fact that he went to the media without the audacity to confirm the allegations with me as the chairman of ARB smacks of mala fide on his part. This has went beyond fair comments," he said, adding that he has instructed his lawyers to pursue all legal causes of action to protect his interests.

1MDB today also issued a denial on the matter, saying that there was no truth to Ng's claim.

“There is no truth in the claim by an opposition MP that 1MDB has taken a RM2 billion loan from AmanahRaya Berhad.

"1MDB has never had any financial dealings, including borrowings, with AmanahRaya Berhad." 1MDB president and group executive director Arul Kanda Kandasamy said in a statement.

- TMI