1MDB CEO’s ‘sacking’ tip of the proverbial iceberg
He was either doing a terrible job or he has become the fall guy in the company which has accumulated a staggering RM42 billion in debt.
Free Malaysia Today
The sudden resignation of the 1Malaysia Development Berhad (1MDB) CEO, Mohd Hazem Abdul Rahman, and the appointment of Abu Dhabi-based Malaysian banker Arul Kanda Kandasamy as executive president and executive director proves that all is not well with the sovereign wealth fund behind the steely façade presented by both the company as well as Prime Minister Najib Abdul Razak, according to Petaling Jaya Utara MP Tony Pua in a statement.
“1MDB Chairman Lodin Wok Kamaruddin‘s statement on the executive change at the very top clearly indicates that Mohd Hazem has been fired.
“He was either doing a terrible job or he has become the fall guy for the 100 per cent Ministry of Finance owned company which has accumulated a staggering RM42 billion in debt.”
If not for the disastrous performance of 1MDB to date, asked Pua who is also DAP National Publicity Secretary, why would there be an admission of the need for a “strategic review” and to find “financial alternatives” for 1MDB.
“We believe that the ‘sacking’ of Hazem is only the start of a ripple-effect arising from the intense public scrutiny placed on 1MDB, he added, and in particular the filing of a police report by an Umno leader on mismanagement and possible corrupt practices within the company.”
He called upon the Royal Malaysian Police to speed up the investigation of the company before all records are destroyed. “We also ask Najib, who is also Finance Minister, to agree to an audit by the Auditor-General as well as for the company to testify before the Public Accounts Committee to ensure full transparency and accountability on the matter.”
“What is more worrying is that Mohd Hazem was the CEO of 1MDB for less than 2 years.”
The previous CEO, Shahrol Halmi, was “removed” from his position on March 22, 2013, he recalled. “Two CEO changes within 24 months can only point to poor performance and fishy business deals behind the scenes in the debt-ridden company.”
The “sacking” of Hazem comes as 1MDB was unable to repay an outstanding RM2 billion of its debt which was due in November 2014, continued Pua. “The RM2 billion debt is actually a portion of a bigger RM5.5 billion debt which was rescheduled and restructured in November 2013.”
