1MDB to just repay debts, says Arul

1MDB will have no daily ope­rations after the rationa­lisation plan and will act as a shell company, only receiving cash flow from the plan to pay bond debts.

This decision was made following the PAC recommendation that subsidiaries and asset-holders be handed over to Ministry of Finance Inc, said 1MDB president and chief execu­­­­tive officer Arul Kanda Kanda­samy.

In an exclusive interview with TV3, Arul also addressed allegations about the funnelling of 1MDB funds to the Prime Minister’s private accounts.

“The PAC report shows, in detail, where the 1MDB funds went. Every sen has been accounted for. This is a very important matter.

“(Former prime minister) Tun Dr Mahathir (Mohamad) made statements which implied that RM2.6bil in funds in the private account of Prime Minister Datuk Seri Najib Tun Razak came from 1MDB.

“If we look at the report, it’s clear that there is no evidence at all that the RM2.6bil went from 1MDB to the private account,” he said.

He also said 1MDB board of directors’ collective offer to resign after enacting the rationalisation plan and stabilising the company was not an act of running away.

He explained that it was an effort to “give space” so further investigations could be conducted.

“If I myself am found to have committed an offence, I am ready to ac­cept what is decided by the enfor­cers,” he added.

No compensation or payment was requested by any of the directors.