Published on Aug 5, 2018
31 July 2018
Najib: Arul Kanda took big pay cut to accept RM5mil 1MDB pay package
KUALA LUMPUR: Arul Kanda Kandasamy took a “big paycut” when he joined the 1Malaysia Development Bhd (1MDB) as chief executive officer, said Datuk Seri Najib Tun Razak.
The former premier said a lawyer or someone close to Arul Kanda would issue a statement on matters related to his pay package.
“He was earning so much more when he was working in a bank in the United Arab Emirates, so he took a big pay cut to join 1MDB.
“He was also successful in reducing the debt from RM50bil to RM30bil so he has accomplished that part of his responsibility,” he told reporters at the Parliament lobby on Wednesday.
Pakatan Harapan will not pay the remaining RM2.5mil the previous administration agreed to pay ex-1MDB president Arul Kanda Kandasamy. The full 6-month salary package was RM5mil
31 July 2018
PARLIAMENT | Former Prime Minister Najib Razak had endorsed a RM5 million payment to ex-1MDB president Arul Kanda Kandasamy, Finance Minister Lim Guan Eng revealed today.
This confirms an exclusive report by Malaysiakini in June which said that the government agreed to pay the ex-gratia amount to the former head honcho of 1MDB.
“In January this year, he was paid RM2.5 million as an advance payment and will later receive another RM2.5 million after June 30,” Lim said during the winding-up debate on the royal decree at Dewan Rakyat today.
“The contract was signed by the former prime minister,” he added.
Beside Arul Kanda, he also said former SRC international Sdn Bhd directors Suboh Md Yassin and Nik Faisal Ariff Kamil were paid a total RM84,583 and RM74,583 respectively for directors’ fees.
He said Nik Faisal also received the monthly wages totalling RM335,000 and a RM533,000 bonus.
“A total of RM106,000 was also paid to the Employees Provident Fund (EPF) on their behalf,” he said.
29 June 2018
Highlight: 1MDB sacks Arul Kanda
KUALA LUMPUR (June 29): 1Malaysia Development Bhd has sacked its president and chief executive officer Arul Kanda Kandasamy, two days before the end of his garden leave on June 30, on grounds of dereliction of duties.
According to sources, the termination letter was hand delivered to Arul Kanda on Thursday (June 28).
Last December, Arul Kanda was given a six-month extension with 1MDB from Jan 1. Sources said Arul was paid RM2.5 million for the extension, with another RM2.5 million to be paid on June 30. With the sacking, 1MDB would also claim back the RM2.5 million that was already paid to Arul Kanda.
1MDB terminates Arul Kanda
UPDATED 10AM | 1MDB has terminated the service of its president and chief executive officer, Arul Kanda Kandasamy, effective yesterday.
The letter of termination, sighted by Malaysiakini said that Arul Kanda is found to have “breached the contract and fiduciary duty” as the head of 1MDB.
The decision to terminate Arul Kanda’s service was made during a board meeting on June 25, and the said letter was served to him yesterday, said sources.
Malaysiakini has contacted Arul Kanda for comment.
1 June 2018
MOF under Najib agreed to RM5m ex-gratia for Arul Kanda?
EXCLUSIVE | The Finance Ministry, under the previous administration, agreed to an RM5 million ex-gratia payment for 1MDB president Arul Kanda Kandasamy and to place him on garden leave until his contract expired on June 30, according to sources.
Malaysiakini also sighted a correspondence between then finance minister Najib Abdul Razak and then treasury secretary-general Irwan Serigar Abdullah.
According to sources, half of the amount – RM2.5 million – is to be paid after Arul Kanda’s contract expires. Malaysiakini could not confirm if the first instalment had been paid.
Malaysiakini could not reach Najib, his aides or Irwan for confirmation whereas Arul Kanda has not responded to requests for comments as well.
Last Wednesday, Arul Kanda, who is on a six-month contract, told Finance Minister Lim Guan Eng that he was on garden leave.
This implies he is in the process of leaving the firm but has been instructed not to come to the office. However, he still receives his salary.
Arul Kanda was among several key 1MDB officials to brief Lim on the status of the firm.
The Finance Ministry is the 100 percent shareholder of 1MDB.
The Immigration Department’s database shows 1MDB CEO Arul Kanda Kandasamy has been slapped with a travel ban. – Malaysiakini
24 May 2018
Guan Eng reminds Arul: You’re still 1MDB staff
Finance Minister says the 1MDB president is the only employee of the company, which is solely owned by the ministry.
PUTRAJAYA: 1MDB president Arul Kanda was reminded today that he remains an employee of the company, and was, in fact, the company’s only employee.
Finance Minister Lim Guan Eng, issuing the reminder in the wake of Arul Kanda’s response to criticism, also said: “1MDB is now solely owned by the finance ministry.”
Lim was asked if he would dismiss Arul Kanda for remarks that Arul Kanda had made, but said he would take it step by step and inform the public of any developments.
Arul Kanda had said he was seeking legal advice after Lim called him “dishonest” following a meeting between Finance Ministry officials and former 1MDB directors and management yesterday.
Lim said Arul Kanda had every right to sue him, if that is what he wanted to do.
“Arul Kanda has made many promises so if he wants to sue we will be waiting for him. I do not know whether he would do that but he is free to do so,” Lim said.
Guan Eng: We’ll be waiting for Arul Kanda’s suit
PUTRAJAYA, May 24 — Finance Minister Lim Guan Eng said 1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy may take legal action if he wants to.
Lim also reminded Arul Kanda that he is currently the sole employee of 1MDB, that is owned by the ministry itself.
“He said he wants to sue we will be waiting for him. He is free to do so.
“He is the only employee in 1MDB, that is solely owned by the ministry,” Lim said in a press conference here.
JUST IN: Arul Kanda consulting lawyers on potential legal action over “potentially defamatory and personal attacks” against him by Finance Minister
FM Lim says he’s found 1MDB’s Arul Kanda to be utterly dishonest and untrustworthy, to review his position as president. PwC appointed to conduct a special position audit and review of 1MDB so that Malaysians would know the true financial state .
Finance minister’s verdict – Arul Kanda ‘utterly dishonest’
In a scathing indictment, Finance Minister Lim Guan Eng accused the 1MDB president and chief executive officer Arul Kanda Kandasamy of being “utterly dishonest and untrustworthy.”
This was after Arul Kanda briefed Lim on the state of the firm, which the minister found unsatisfactory.
“I have found Arul Kanda to be utterly dishonest and untrustworthy.
“I have instructed the legal advisers of the Finance Ministry to review his position as 1MDB president,” Lim told a press conference in Putrajaya this evening.
According to the finance minister, Arul Kanda informed him that he was unsure about the value of 1MDB’s US$2.5 billion (RM9.8 billion) “fund units” investments, or if these even existed.
“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 song he sang to the Public Accounts Committee as recorded in the Hansard,” he added.
Lim said the RM9.8 billion was significant as it would have helped settle 1MDB’s debt.
Yesterday, the finance minister revealed that the previous BN government 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 predecessor of trying to cover up the multi-billion ringgit 1MDB scandal and has vowed to uncover the alleged wrongdoings.
1MDB confirms it is insolvent, and is therefore unable to repay debts due on May 30th. Its CEO, Arul Kanda Kandasamy said he’s on leave until his contract ends next month, and claims he’s unaware of the firm’s financial situation. – Finance Minister, Lim Guan Eng