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Arul Kanda denies LGE allegations

  • Arul Kanda Kandasamy has denied allegations hurdled against him by finance minister Lim Guan Eng. Photo courtesy: Bernama

KUALA LUMPUR, May 24 (Bernama) -- 1Malaysia Development Bhd (1MDB) President Arul Kanda Kandasamy has strongly denied the potentially defamatory and personal attacks hurdled against him by the Minister of Finance, Lim Guan Eng.

In a statement, issued by Arul in his personal capacity, he opined that the remarks made by Lim in a statement issued yesterday did not fully and 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 puts me in a bad light," he said.

Arul Kanda said this in relation to Lim's remarks that 1MDB was "insolvent" and Arul Kanda was "utterly dishonest and untrustworthy".

Lim yesterday summoned Arul Kanda for a meeting to establish the status of the investment company's finance, specifically on its ability to repay its debt.

According to Arul Kanda, during the meeting referred to in the statement by Lim, he was asked many questions and had answered truthfully and to the best of his collection, but 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," he said.

Arul Kanda explained he only joined 1MDB in January 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 Public Accounts Committee (PAC) Report on 1MDB, the Auditor General Report on 1MDB and the US Department of Justice's (DOJ) civil suit," he said.

Arul Kanda added 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 rationalization of the company.

"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," added Arul.



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