KOTA KINABALU, June 29 — 1Malaysia Development Berhad (1MDB) hand delivered a letter of termination to its president and chief executive officer Arul Kanda Kandasamy yesterday, The Edge reported today.
Citing unnamed sources, the financial daily said Arul Kanda was sacked two days before his contract expiry for dereliction of duties.
Arul Kanda was reportedly the sole employee of the sovereign investment fund and was reported to have been given a six-month extension beginning January 1 under the previous Barisan Nasional government, which was defeated and replaced by Pakatan Harapan in the May 9 general election.
The Edge said it was told by sources that Arul Kanda was paid RM2.5 million for the extension, with another RM2.5 million to be paid on June 30.
With the sacking, 1MDB would now seek to claim back the RM2.5 million that was already paid to Arul Kanda, the paper added.
Malay Mail is trying to verify the information.
1MDB is wholly owned by the Finance Ministry and its Minister Lim Guan Eng had described Arul Kanda as “utterly dishonest and untrustworthy” after a meeting with the latter last month.
Arul Kanda had said he was unaware of the 1MDB’s financial situation as he was on garden leave till June 30.
He had also insisted the alleged wrongdoings at the firm occurred before he was recruited.
Arul Kanda had gone on a nationwide tour of the country prior to the 14th general election to meet the people and answer questions regarding 1MDB.
At 38 years old, Arul Kanda joined 1MDB in January 2015 to turn around the cash-strapped state investment fund that was laden with a whopping debt of some RM45 billion at the time.
Prior to joining 1MDB, he was executive vice-president, head of investment banking group and head of corporate finance in Abu Dhabi Commercial Bank PJSC, a post he held from July 2008.
On Monday, the fund announced Treasury deputy secretary-general overseeing government investment Datuk Asri Hamidon as its new chairman, along with Datuk Muhammad Faiz Azmi, Datin Rashidah Mohd Sies, and Datuk Wan Mohd Fadzmi Wan Othman as its new executive committee.