1MDB: Clarification and Accountability
Arul Kanda, President and Group Executive Director
In reference to a blog posted yesterday by Tun Dr Mahathir Mohamad, I wish to make clear that my role at 1MDB has been and will continue to be as a professional. I was initially appointed to conduct a strategic review of the company, and am now leading the implementation of a rationalisation plan for the business, as presented to Cabinet on 29 May 2015.
As a professional, I am fully accountable for my actions and am answerable to the 1MDB Board, and our shareholder the Ministry of Finance. In the current context, this also includes the Auditor General, Bank Negara Malaysia and the Public Accounts Committee. These are the lawful authorities to verify whether or not I have ever lied, as has been claimed, as they have access to all information. I shall continue to conduct my duties in a professional manner, and furnish all information to assist the lawful authorities to verify the truth about 1MDB.
Tun Mahathir stated in his blog that a Parliamentary response submitted by the Ministry of Finance was subsequently amended. This has been previously acknowledged by the Ministry of Finance, and occurred due to confusion around some information provided by 1MDB. As the President of the company, I take full responsibility for this misunderstanding, and will ensure better communication with all stakeholders. Furthermore, as clarified by the MOF, appropriate steps have already been implemented to prevent this happening again in the future.
Separately, Tun Mahathir has previously claimed that RM42 Billion is missing. Now, after 1MDB provided a summary of how the RM42 billion was spent – based on past audited financial statements, he has stated in his blog post “where a chunk of the 42 billion ringgit went is questionable.” This continuous shift in numbers and allegations is perplexing.
With regard to other questions posed by Tun Mahathir and various commentators, the Prime Minister has said, “a full accounting of the facts by lawful authorities are needed so that there can be no misinterpretation or spin”. In this context, the Prime Minister has affirmed that “if any wrongdoing is proven, the law should be enforced without exception”. This is a position I fully support, both in relation to my own conduct to date, and that of 1MDB more generally.
I reiterate that the 1MDB team is fully committed in its efforts to implement the rationalisation plan presented to Cabinet. This plan will substantially reduce the company’s debt levels, and is well underway, as proven by the repayment of an RM 3.6 billion loan as announced on Monday 8 June.
