Finance minister: 1MDB badly managed, so why pay Arul RM5m?

  • Aug 7, 2018
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The preliminary audit report on 1MDB has revealed severe shortcomings in its corporate governance, said Finance Minister Lim Guan Eng today.

He thus questioned why the former BN government had paid former 1MDB chief executive officer Arul Kanda Kandasamy RM5 million on top of his salary.

“We are shocked by the preliminary audit report that is submitted by PricewaterhouseCoopers (PWC) about 1MDB.

“It shows the failure of the previous management to comply with basic good corporate practices.

“Which brings to the question - why was Arul Kanda paid RM5 million for six months? For not doing what a CEO is supposed to do?" Lim asked in a press conference at the Parliament lobby today.

He specifically urged former prime minister and 1MDB chairperson Najib Abdul Razak to explain the payment.

The PWC report will be made public when it is completed, Lim promised.

“The people have the right to know... When it is done properly, we will make it public,” he said.

Parliament was told last week that the Najib administration had given Arul an RM5 million ex-gratia payment for the six-month extension on top of his salary. 

Arul received only half of the golden parachute because his tenure was terminated by the Pakatan Harapan administration, two days before the end of his contract. 

The government is now trying to recover the RM2.5 million payment.