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1MDB will be shell company

In an immediate response, 1MDB said it respected the decision of the central bank and will pay the compound on or before the due date.

In an immediate response, 1MDB said it respected the decision of the central bank and will pay the compound on or before the due date.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — April 7, 2016: 1Malaysia Development Berhad (1MDB) will be a shell company once the rationalisation plan is fully implemented.

This is based on the rationalisation plan and the suggestion by the Public Accounts Committee (PAC) that 1MDB’s subsidiaries are removed (from under the company’s control).

“(This means) there will be no daily operations and 1MDB will serve its debts through cashflow derived from the rationalisation plan,” said president and executive director Arul Kanda in an interview aired during TV3’s ‘Buletin Utama’ tonight.

Arul Kanda was commenting on the PAC’s suggestion that all 1MDB’s assets and subsidiaries should be handed over to the Finance Ministry (Inc) (MOF Inc) for tighter supervision.

Discussions to decide the status of 1MDB will be held with MOF Inc soon.

Presently 1MDB owns the Tun Razak Exchange and 40 per cent of Bandar Malaysia.

Arul Kanda also remarked that the resignation offers by the six board members of 1MDB were not a ploy to escape.

“In fact, the move allows more space for the authorities to conduct further and transparent investigations on 1MDB,” he said.

1MDB has a cash surplus of RM2.96 billion following the sale of Edra Global Energy and the disposal of part of its stake in Bandar Malaysia.

Arul Kanda said the board, including himself, did not request financial allocation, compensation or payment.

“The authorities and enforcement parties have been requested by PAC to examine the report.

“If there is any wrongdoing then action will be taken. If I’m found to have done anything wrong, then I’m ready to accept what is determined by the authorities,” he said. — Bernama

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