Arul Kanda 'utterly dishonest, untrustworthy' - Finance Minister

Finance Minister Lim Guan Eng has claimed 1MDB president and CEO Arul Kanda Kandasamy is "utterly dishonest and untrustworthy."

This was after Arul Kanda provided a briefing to Lim on the state of 1MDB, which the minister had found unsatisfactory.

"I have found Arul Kanda to be utterly dishonest and untrustworthy, and instructed the legal advisers to the Finance Ministry to review his position as the 1MDB president," Lim told a press conference in Putrajaya today.

According to Lim, Arul Kanda had informed him that he was unsure about of the value of 1MDB's US$2.5 billion (RM9.8 billion) "fund units" investments, or whether they existed at all.

"Arul Kanda’s response was utterly shocking and preposterous, because prior to the change of government, he toured the country preaching the financial viability of 1MDB and the soundness of its investments.

"In fact, Arul Kanda is today singing a completely different tune from the songs he sang to the Public Accounts Committee as recorded in the Hansard," said Lim.

Lim said the RM9.8 billion was significant as it would have helped pay off 1MDB's debt.

Yesterday, Lim revealed that the previous BN government had spent around RM7 billion bailing out 1MDB, despite the company’s insistence that it could repay its own debt.

The new Pakatan Harapan government has accused its predecessors of trying to cover up the multi-billion ringgit 1MDB scandal and has vowed to uncover alleged wrongdoings.

In total, 1MDB previously claimed it held approximately US$2.5 billion (RM9.8 billion) in "fund units" with US$940 million being held by its subsidiary Brazen Sky Ltd and another US$1.56 billion by a separate subsidiary 1MDB Global Investment Ltd (1MDB GIL).

However, the US Department of Justice claimed the "fund units" were "relatively worthless" and was a front for money that had already been stolen. -Mkini