Lim ‘ready’ for Arul Kanda’s sue threat
PUTRAJAYA: Finance Minister Lim Guan Eng is ready for any legal action by 1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy.
“Arul Kanda has made many promises. If he wants to sue, we will be there.
“But, it must be remembered that he is an employee of 1MDB, the only one remaining, and 1MDB is fully owned by the Finance Ministry,” Lim said during a press conference at the ministry here yesterday.
It was reported earlier yesterday that Arul Kanda was mulling legal action against Lim over the latter’s statement following their meeting at the Finance Ministry yesterday.
Arul Kanda said he denied Lim’s potentially defamatory and personal attacks on him.
“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 on my options.”
Lim on Monday summoned Arul Kanda for a meeting to establish the status of 1MDB’s finances, specifically its ability to repay its debts.
During the meeting, Lim asked what had happened to the US$940 million “investment” units held with BSI Bank in Singapore and US$1.56 billion worth of overseas investment funds belonging to 1MDB Global Investments Ltd.
These, Lim had said, collectively amounted to RM9.8 billion, which, if redeemed, would be more than sufficient to meet 1MDB’s financial obligations for the next few years.
Following the meeting, Lim had claimed that Arul Kanda was clueless whether the collective RM9.8 billion investment was real or not.
“I have found Arul to be utterly dishonest and preposterous. Prior to the change in government, he toured the country preaching 1MBD’s financial viability and soundness of investments,” Lim was quoted as saying.
“Today, Arul is singing a completely different tune from the songs he sang to the Public Accounts Committee, as recorded in the Hansard. I have immediately instructed the Finance Ministry’s legal counsel to review Arul’s position as 1MDB president,” Lim had said.
Arul Kanda, in his statement, said it was unfair of Lim to issue a statement that did not 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 they produce a false impression and put me in a bad light.”
Arul Kanda said during the meeting, he answered Lim’s questions truthfully and to the best of his recollection.
He, however, said he answered 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.”
Arul Kanda said he only joined 1MDB in 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 PAC Report on 1MDB, the Auditor General Report on 1MDB and the United States Department of Justice’s civil suit.”
Arul Kanda reiterated that multiple domestic authorities conducted, and were still conducting, investigations into 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 shareholders.
“My focus was, and has been, on the business rationalisation of the company.”
He added that he would fully cooperate with ongoing or new investigations into 1MDB-related matters.