MP: All is not well behind 1MDB's 'steely facade'
Published: Jan 6, 2015 11:33 AM | Updated: Jan 6, 2015 10:03 PM
The sudden resignation of 1Malaysia Development Bhd's (1MBD) chief executive officer and the appointment of a new executive president proves that all is not well in the investment fund, said a DAP lawmaker.
UPDATED 1PM
Pua says a firm claiming to be doing well will not go for a shake-up.
The sudden resignation of 1Malaysia Development Berhad's (1MBD) chief executive officer and the appointment of a new executive president proves that all is not well in the investment fund, said a DAP lawmaker.
"A company that claims itself to be doing well and is in the midst of completing a massive US$3 billion initial public offering for its energy division will not, under normal circumstances, be under-going a major management shake-up.
"This is especially since 1MDB chairperson Lodin Wok Kamaruddin (right) has just taken the trouble to issue a lengthy statement to assure Malaysians that all is very well within the company," added PJ Utara MP Tony Pua.
However, he said the resignation of Mohd Hazem Abdul Rahman as CEO and the appointment of Arul Kanda Kandasamy as the executive president revealed a different scenario behind the "steely facade" portrayed by the firm and by Prime Minister Najib Abdul Razak.
Pua alleged that the move clearly indicated that Mohd Hazem had been "fired" either for doing a bad job or even worse, being a fall guy for the debts the fund has been accumulating.
"The 1MDB chairperson's statement clearly indicates that Mohd Hazem has been fired.
"He was either doing a terrible job or he has become the fall guy for the 100 percent Ministry of Finance owned company which has accumulated a staggering RM42 billion in debt," he added.
Yesterday, Lodin had said that Mohd Hazem resigned and is to be replaced by Abu Dhabi-based Malaysian banker Arul.
"It is time for the company to silence its critics and deliver against its stated objectives..," he had said.
Why so 'many CEOs'?
However, Pua claimed that something "fishy" was going on with 1MDB with the numerous changes of CEOs in recent years.
"What is more worrying is that Mohd Hazem (right) was only the CEO of 1MDB for less than two years.
"The previous CEO Shahrol Halmi was 'removed' from his position only on March 22, 2013.
"Two CEO changes within 24 months can point only to poor performance and fishy business behind the scenes for the debt-ridden company," he alleged.
Moreover, Pua alleged that the "sacking" of Mohd Hazem, which comes after 1MDB failed to pay up a debt of RM2 billion that was due in November 2014, was only the start of more things to arise from the debt-ridden fund.
"We believe that the sacking of Hazem is only the start of a ripple-effect arising from the intense scrutiny placed on 1MDB," he added.
Najib must agree to audit
Pua said 1MDB has also delayed raising funds required for a government awarded power plant project, which results in the project completion being postponed entirely.
"1MDB has also failed to raise a required RM8.4 billion in loans in November 2014 to kick start a RM11 billion power plant project which was awarded by the government in February 2014.
"As a result, not only 1MDB had to suffer the ignominy of postponing the fund raising exercise to this year, the power plant project delivery would be significantly delayed," he added.
Pua believes this is why the police should investigate the fund thoroughly and an audit be done by the auditor-general.
"We call upon the police to speed up the investigations on the company before all records are destroyed," he said.
Apart from the opposition, former premier Dr Mahathir Mohamad has also been critical of 1MDB.
Recently, an Umno leader also lodged a police report against 1MDB and called for its directors to be investigated.
Meanwhile, Pua also called on Najib to agree to an audit as well as for the company to testify to the Public Accounts Committee to ensure full transparency and accountability in his administration.
1MDB has always maintained that its dealings have been done overboard.
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"A company that claims itself to be doing well and is in the midst of completing a massive US$3 billion initial public offering for its energy division will not, under normal circumstances, be under-going a major management shake-up. "This is especially since 1MDB chairperson Lodin Wok Kamaruddin (right) has just taken the trouble to issue a lengthy statement to assure Malaysians that all is very well within the company," added PJ Utara MP Tony Pua.
However, he said the resignation of Mohd Hazem Abdul Rahman as CEO and the appointment of Arul Kanda Kandasamy as the executive president revealed a different scenario behind the "steely facade" portrayed by the firm and by Prime Minister Najib Abdul Razak.
Pua alleged that the move clearly indicated that Mohd Hazem had been "fired" either for doing a bad job or even worse, being a fall guy for the debts the fund has been accumulating.
"The 1MDB chairperson's statement clearly indicates that Mohd Hazem has been fired.
"He was either doing a terrible job or he has become the fall guy for the 100 percent Ministry of Finance owned company which has accumulated a staggering RM42 billion in debt," he added.
Yesterday, Lodin had said that Mohd Hazem resigned and is to be replaced by Abu Dhabi-based Malaysian banker Arul.
"It is time for the company to silence its critics and deliver against its stated objectives..," he had said.
Why so 'many CEOs'?
However, Pua claimed that something "fishy" was going on with 1MDB with the numerous changes of CEOs in recent years.
"What is more worrying is that Mohd Hazem (right) was only the CEO of 1MDB for less than two years. "The previous CEO Shahrol Halmi was 'removed' from his position only on March 22, 2013.
"Two CEO changes within 24 months can point only to poor performance and fishy business behind the scenes for the debt-ridden company," he alleged.
Moreover, Pua alleged that the "sacking" of Mohd Hazem, which comes after 1MDB failed to pay up a debt of RM2 billion that was due in November 2014, was only the start of more things to arise from the debt-ridden fund.
"We believe that the sacking of Hazem is only the start of a ripple-effect arising from the intense scrutiny placed on 1MDB," he added.
Najib must agree to audit
Pua said 1MDB has also delayed raising funds required for a government awarded power plant project, which results in the project completion being postponed entirely.
"1MDB has also failed to raise a required RM8.4 billion in loans in November 2014 to kick start a RM11 billion power plant project which was awarded by the government in February 2014.
"As a result, not only 1MDB had to suffer the ignominy of postponing the fund raising exercise to this year, the power plant project delivery would be significantly delayed," he added.
Pua believes this is why the police should investigate the fund thoroughly and an audit be done by the auditor-general."We call upon the police to speed up the investigations on the company before all records are destroyed," he said.
Apart from the opposition, former premier Dr Mahathir Mohamad has also been critical of 1MDB.
Recently, an Umno leader also lodged a police report against 1MDB and called for its directors to be investigated.
Meanwhile, Pua also called on Najib to agree to an audit as well as for the company to testify to the Public Accounts Committee to ensure full transparency and accountability in his administration.
1MDB has always maintained that its dealings have been done overboard.
Related stories
Will a new CEO at 1MDB power changes?
Khairuddin: I advised 'nice man' PM on 1MDB
1MDB missed December's RM2bil loan payment
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