PAC: 1MDB bosses should be worried, we know more now

(The Star) – “They should be worried.” This is what the Public Accounts Committee (PAC) says of 1Malaysia Development Berhad past and present chief executive officers Arul Kanda Kandasamy and Shahrol Halmi.

Its chairman Datuk Nur Jazlan Mohamed (pic) said the committee, having interviewed the auditors, now had more questions for the two when they face the PAC in August.

“We are giving them good time and not more time to prepare themselves. They should be more worried as we now have more questions for them,” he told reporters here yesterday.

In an immediate reaction, Arul Kanda said he had been called to appear before the committee on Aug 5, implying that he would indeed attend the inquiry.

Arul Kanda did not make it on May 26 because he said he was abroad for official business.

“The purpose of my appearance before the committee is to respond to questions that its members may have.

“I have every confidence that the honourable members will allow me a fair opportunity to explain 1MDB’s position, to a lawful authority.

“The PAC is a lawful authority and the appropriate forum for questions to be asked and answered,” he said in a statement.

Arul Kanda also said the 1MDB team would be focused on delivery of the rationalisation plan presented to the Cabinet on May 29.

“We have since successfully repaid a RM3.6bil loan and will soon issue a request for proposal for equity investors in Bandar Malaysia in line with the rationalisation plan,” Arul Kanda said.

The PAC had wanted to call both men to testify on the same day in early August but has now decided to call them separately.

“We are calling them separately based on the new information gathered,” Nur Jazlan said.

Sharol will be called on Aug 4.

Nur Jazlan said Mohd Hazem Abd Rahman, who was managing director and CEO of 1MDB for a brief moment, would also be called to testify on Aug 6.

Earlier, he described the PAC’s probe into KPMG’s role as the auditor in 2010 to 2012 as “a good treasure of information”.

He said KPMG was the auditor when 1MDB entered into major contracts such as the PetroSaudi deal.

“They (KPMG) were cooperative and we questioned them on issues such as good governance, prudence and risk management,” Nur Jazlan added.

He said former 1MDB’s directors – Sime Darby Bhd CEO Tan Sri Mohd Bakke Salleh and RHB Bank chairman Tan Sri Azlan Zainol – would be called to testify on Aug 17 along with the current board of directors.

In early March, Prime Minister Datuk Seri Najib Tun Razak ordered the A-G to start an independent probe into 1MDB, pledging that the company will face legal repercussions if any wrongdoings are proved.

The PAC initiated its own probe as 1MDB had since become a political issue.

The final report will be tabled in Parliament.

Later, at the Dewan Rakyat, Deputy Finance Minister Datuk Ahmad Maslan denied that the US$150mil(RM540mil) loan given to 1MDB from Export Import (Exim) Bank was to buy land in Pulau Indah.

“The information I have at this moment is that the loan is to pay for the maintenance and upgrading of 1MDB’s power plants overseas,” he said.