Banker to helm 1MDB

(NST) – 1Malaysia Development Bhd’s (1MDB) Mohd Hazem Abd Rahman (pic) resigned as its managing director and chief executive officer (CEO) as part of a transition plan, says chairman Tan Sri Lodin Wok Kamaruddin.

He will be replaced by Abu Dhabi-based Malaysian banker Arul Kanda as the president and group executive director effective immediately.

As 1MDB’s new president, his first priority will be to undertake a comprehensive strategic review of its operations, whilst driving value from the high quality energy and property assets in the company’s portfolio.

“I am pleased to be joining 1MDB at this important juncture. I am confident that 1MDB will achieve the right outcome for the company and its stakeholders,” said Arul in a statement today.

Arul, who was a student at the Royal Military College, has been an executive vice-president, head of investment banking group and corporate finance division, for the Abu Dhabi Commercial Bank since July 2008.

The 38-year-old also served as a non-independent non-executive director of RHB Investment Bank Bhd from July 2009 to May 10, 2011, and as a director of RHB Islamic Bank Bhd, apart from being a non-independent non-executive director at RHB Capital Bhd from July 20, 2009 to May 10, 2011.

Lodin, meanwhile, said, the board of directors will be undertaking a strategic review to explore and determine a course of action that will allow 1MDB to maximise returns for all of its stakeholders.

He said it was time for the company to silence its critics and deliver against its stated objectives.

“The board intends to examine a full range of strategic and financial alternatives to achieve the greatest value, the outcome of which will be announced in due course. We will continue to execute the on-going initiatives, increase operational efficiencies and improve the company’s financial performance whilst this process takes place,” Lodin said.