I reduced 1MDB’s debt by RM18bil, says Arul Kanda

 

In a recent lawsuit, Arul Kanda Kandasamy claimed he had secured billions of ringgit in investments for 1MDB from various third parties.

PETALING JAYA: 

A former 1MDB president who is suing the state investment arm for RM2.7 million claims he had successfully reduced the company’s debt by RM18 billion within two years.

In his statement of claim, Arul Kanda Kandasamy, said he was approached by 1MDB in December 2014 to help restructure the company and reduce its debt, which at the time stood at RM50 billion, The Edge reported.

Arul Kanda joined 1MDB in January 2015.

He subsequently implemented several measures aimed at rehabilitating the company.

These included negotiating with lenders to avoid triggering a default in the company’s multi-billion ringgit loans and reviving the stalled Tun Razak Exchange (TRX) project.

Arul Kanda also said he ensured that the interest and principal repayments on the company’s facilities were made on time.

In addition, he said he secured billions of ringgit in investments from various third parties such as Prudential, HSBC, Affin Bank and through the lease of land for the TRX project.

Arul Kanda also revealed that he oversaw the sale of equity in Edra Global and a 60% stake in Bandar Malaysia at RM9.83 billion and RM7.41 billion respectively.

The plaintiff (Arul Kanda) states that via these measures, the debt of the defendant (1MDB) was reduced by approximately RM18 billion in a space of two years,

 the statement of claim read.

Arul Kanda said his two-year tenure with the company ended on Dec 31, 2017, but the 1MDB board agreed to an extension after discussions were held.

He said the extension agreement was signed on Feb 23, 2018, but he was wrongfully terminated by 1MDB on June 25, 2018.

The suit is fixed for case management on July 22.

Arul Kanda initiated the present suit in May after the High Court disallowed his application to counterclaim for the total sum of RM2,702,600 – being an unpaid balance of RM2.5 million as a bonus and two months’ salary worth RM202,600 – as well as several other claims that he had against 1MDB.

Arul Kanda had intended to raise these in his counterclaim to a US$6.59 billion (RM30.83 billion) suit brought by 1MDB on Nov 17 last year against him and an ex-1MDB chairman.

Last month, the Court of Appeal allowed Arul Kanda’s appeal and granted him leave to amend his defence and counterclaim to include the present claim for RM2,702,600. - FMT