PAS satisfied with 1MDB’s explanation on rationalisation

Tuan Ibrahim Tuan Man of PAS says 1MDB’s Arul Kanda has briefed party representatives on the matter and company should be given the chance to resolve its debts.

(FMT) – PAS says it is satisfied with a clarification on the issue of debts incurred by 1MDB following a meeting with the sovereign wealth fund’s president Arul Kanda Kandasamy today.

Its deputy president Tuan Ibrahim Tuan Man said Arul explained the state-owned company’s rationalisation plan to PAS representatives during the three and half-hour long discussion.

“Overall, we are satisfied with the explanation given by Arul, particularly on the rationalisation plan that he proposed to overcome the crisis in 1MDB,” he said.

“PAS hopes that 1MDB will be given the chance to resolve all its debts because a delay in doing so would cause interests on its loans to grow by as much as US$1.9 billion (RM8.14 billion) a year,” he said at a press conference after the meeting at Hotel De Palma here.

The meeting was attended by 30 members of the party’s national committee and other leaders invited by PAS, including former Selangor menteri besar Khalid Ibrahim.

1MDB reportedly said last week it had written to Abu Dhabi-based International Petroleum Investment Company (IPIC) about its failure to pay US$600 million (RM2.57 billion) by the July 31 deadline.

The firm said the first instalment of its full payment totalling US$1.2 billion to IPIC had been pushed to August as the funds 1MDB was due to receive last month had been delayed due to the need for additional regulatory approvals.

It said all payments to IPIC would be based on returns from 1MDB’s rationalisation plan.

On Aug 1, IPIC had reportedly given 1MDB five days to make the payment.

Tuan Ibrahim said PAS had in the past stressed that the government should set up a royal commission of inquiry to investigate the cause of the crisis.

“This proposal was made by our president (Abdul Hadi Awang) on Oct 13, 2015. I think this was the earliest push for an RCI on 1MDB,” he said.

“We hope there is not much political interference in this matter as there is now a plan outlined by him (Arul),” he added.

Tuan Ibrahim said the meeting was held in an open and cordial manner, and Arul would present the document on the discussion to the Public Accounts Committee.

“The PAC cannot resolve the problem because it is made up of eight Barisan Nasional (BN) MPs and five opposition MPs, and there has been no action (from them) so far,” he said.

“The RCI needs to be set up. We see it as a way out,” he said, adding that any leader or other individual found implicated in the crisis must be made to face due government action.