Ultimatum issued on 1MDB's loan from KWAP
Alyaa AzharPublished: Jan 13, 2015 1:42 PM | Updated: Jan 13, 2015 9:47 PM
PKR secretary-general Rafizi Ramli has issued an ultimatum to 1Malaysia Development Berhad's (1MDB) newly-appointed CEO, Arul Kanda Kandasamy, to explain the RM4 billion loan taken by a 1MDB’s subsidiary from Kumpulan Wang Amanah Pencen (KWAP).
UPDATED 3.08PM
Explain 1MDB's loan from KWAP or pensioners'll go to court, says PKR
PKR secretary-general Rafizi Ramli has issued an ultimatum to 1Malaysia Development Berhad's (1MDB) newly-appointed CEO, Arul Kanda Kandasamy, to explain the RM4 billion loan taken by a 1MDB subsidiary from Kumpulan Wang Amanah Pencen (KWAP)
If Arul fails to explain within the next week, PKR would talk to several pensioners over the matter, said Rafizi.
"They are more than willing to take legal action against 1MDB, KWAP and the Finance Ministry for haphazardly using the pension fund in an investment which so far has not been explained," he said.
1MDB subsdidary SRC International - a strategic resource company - had reportedly taken the loan from pension fund KWAP in 2011 to buy a coal mining company in Mongolia.
However, the investment did not materialise and 1MDB transferred ownership of SRC International to the Finance Ministry in 2013.
As such, the RM4 billion loan is now the responsibility of the federal government, said Rafizi.
"So what really happened to the RM4 billion? We would like to know how it was spent.
"We would like to know whether or not 1MDB has coal mines and we would like to know where all these mines are," he said.
Wrong start
Rafizi also said that Arul started his first week in office on the wrong foot when 1MDB issued a statement on Jan 9 hitting out at critics for making "speculations without facts".
"We obviously have to make statements without facts as they have refused to disclose them.
"Only from 2014 onwards under extreme pressure that they had decided to answer certain questions
"So I think it's arrogant for him to say that because this is a non-partisan issue which involves the rakyat and includes both sides (Pakatan Rakyat and BN)," Rafizi said.
In an interview with Malaysiakini two days earlier, Arul said the bulk of the allegations made against the company are "misunderstandings".
"I genuinely believe that the majority of the allegations that have been directed at the company have more to do with a misunderstanding of the business, or are raised for purposes that aren't necessarily business-related, as compared to any real issues that exist within 1MDB," he said.
1MDB repeated this in its email to Malaysiakini last weekend.
"Whilst we welcome scrutiny and questions, we do request that any statements about 1MDB are based on facts, rather than speculation based on misleading information and/or hearsay," it said.
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If Arul fails to explain within the next week, PKR would talk to several pensioners over the matter, said Rafizi.
"They are more than willing to take legal action against 1MDB, KWAP and the Finance Ministry for haphazardly using the pension fund in an investment which so far has not been explained," he said.
1MDB subsdidary SRC International - a strategic resource company - had reportedly taken the loan from pension fund KWAP in 2011 to buy a coal mining company in Mongolia.
However, the investment did not materialise and 1MDB transferred ownership of SRC International to the Finance Ministry in 2013.As such, the RM4 billion loan is now the responsibility of the federal government, said Rafizi.
"So what really happened to the RM4 billion? We would like to know how it was spent.
"We would like to know whether or not 1MDB has coal mines and we would like to know where all these mines are," he said.
Wrong start
Rafizi also said that Arul started his first week in office on the wrong foot when 1MDB issued a statement on Jan 9 hitting out at critics for making "speculations without facts".
"We obviously have to make statements without facts as they have refused to disclose them.
"Only from 2014 onwards under extreme pressure that they had decided to answer certain questions
"So I think it's arrogant for him to say that because this is a non-partisan issue which involves the rakyat and includes both sides (Pakatan Rakyat and BN)," Rafizi said.
In an interview with Malaysiakini two days earlier, Arul said the bulk of the allegations made against the company are "misunderstandings".
"I genuinely believe that the majority of the allegations that have been directed at the company have more to do with a misunderstanding of the business, or are raised for purposes that aren't necessarily business-related, as compared to any real issues that exist within 1MDB," he said.
1MDB repeated this in its email to Malaysiakini last weekend.
"Whilst we welcome scrutiny and questions, we do request that any statements about 1MDB are based on facts, rather than speculation based on misleading information and/or hearsay," it said.
Related stories
1MDB fully redeems RM8.2bil Caymans funds
Why so long for 1MDB to repatriate Caymans cash?
1MDB, where is another RM5.6bil invested?
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