Rafizi: New CEO but 1MDB still no transparency
Published: Jan 20, 2015 10:51 AM | Updated: Jan 20, 2015 11:11 AM
After weeks of piling pressure on his "acquaintance" Arul Kanda Kandasamy after the latter took over as 1Malaysia Development Berhad (1MDB)'s new CEO, PKR secretary general Rafizi Ramli today concluded the company has still not changed.
After weeks of piling pressure on his 'acquaintance' Arul Kanda Kandasamy who took over as 1Malaysia Development Berhad (1MDB)'s new CEO, PKR secretary general Rafizi Ramli today concluded the company has still not changed.
Last week, Rafizi issued an ultimatum to Arul Kanda and 1MDB to explain the RM4 billion loan taken by a former 1MDB subsidiary, SRC International, from Kumpulan Wang Amanah Pencen (KWAP) supposedly to invest in a coal mine in Mongolia, which never materialised.
1MDB's explanation of the matter merely stated that SRC International had nothing to do with it since it has been taken over fully by the Finance Ministry in 2013. But this has got Rafizi all hot under the collar.
"1MDB’s statement confirms my view that under the new leadership of Arul Kanda it is not any different form before in terms of transparency and corporate governance," Rafizi (right) said in a statement today.
He said that he had played up the SRC International issue to "test" whether Arul Kanda would be transparent and detailed in his explanations regarding 1MDB's involvement in SRC International.
"The 1MDB statement hides an important fact that SRC International was established as a 1MDB subsidiary before being transferred to MOF (Ministry of Finance) Inc," he said.
Arul Kanda, a former Abu Dhabi-based investment banker, has been touted to engage detractors more following months of bad publicity for 1MDB regarding the government investment arm's fiscal management, which has left it with mounting debts.
Rafizi has been persistent in questioning how the RM4 billion was spent and the current location of the money following SRC International's transfer, which means the loan burden is now on the federal government.
The loan was taken in 2011, and company's financial statements show that the loan was guaranteed by the government, Rafizi stressed.
"Until now, 1MDB is yet to explain where the RM4 billion went and I will keep pressuring Prime Minister Najib Abdul Razak and 1MDB for answers until there is a proper explanation," he said.
Rafizi also demanded that Parliament reveal SRC's financial statements so that he can prove his claims to be true.
Last week, Rafizi issued an ultimatum to Arul Kanda and 1MDB to explain the RM4 billion loan taken by a former 1MDB subsidiary, SRC International, from Kumpulan Wang Amanah Pencen (KWAP) supposedly to invest in a coal mine in Mongolia, which never materialised.
1MDB's explanation of the matter merely stated that SRC International had nothing to do with it since it has been taken over fully by the Finance Ministry in 2013. But this has got Rafizi all hot under the collar.
"1MDB’s statement confirms my view that under the new leadership of Arul Kanda it is not any different form before in terms of transparency and corporate governance," Rafizi (right) said in a statement today.He said that he had played up the SRC International issue to "test" whether Arul Kanda would be transparent and detailed in his explanations regarding 1MDB's involvement in SRC International.
"The 1MDB statement hides an important fact that SRC International was established as a 1MDB subsidiary before being transferred to MOF (Ministry of Finance) Inc," he said.
Arul Kanda, a former Abu Dhabi-based investment banker, has been touted to engage detractors more following months of bad publicity for 1MDB regarding the government investment arm's fiscal management, which has left it with mounting debts.
Rafizi has been persistent in questioning how the RM4 billion was spent and the current location of the money following SRC International's transfer, which means the loan burden is now on the federal government.
The loan was taken in 2011, and company's financial statements show that the loan was guaranteed by the government, Rafizi stressed.
"Until now, 1MDB is yet to explain where the RM4 billion went and I will keep pressuring Prime Minister Najib Abdul Razak and 1MDB for answers until there is a proper explanation," he said.
Rafizi also demanded that Parliament reveal SRC's financial statements so that he can prove his claims to be true.
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