1MDB did not borrow RM2 billion from AmanahRaya Berhad - Arul Kanda

1Malaysia Development Berhad (1MDB) did not borrow RM2 billion from AmanahRaya Berhad, said 1MDB president and group executive director Arul Kanda Kandasamy.

“There is no truth in the claim by an opposition MP that 1MDB has taken a RM2 billion loan from AmanahRaya Berhad,” he said in a press statement today.

"1MDB has never had any financial dealings, including borrowings, with AmanahRaya Berhad," he said.

Tanjong member of Parliament Ng Wei Aik had alleged that AmanahRaya Berhad had released a loan of RM2 billion to 1MDB after Datuk Seri Reezal Merican Naina Merican was appointed as the trustee company chairman last year.

Meanwhile, Reezal Merican denied that the company had extended any kind of loan to 1MDB.

“I would like to state clearly here that there was no loan to 1MDB for the amount stated. It never happened and was never brought up for approval of the board which I had presided over,” he said in a media statement today.

He said Ng’s allegation is unfounded and malicious with the intent to ruin his integrity as an individual and as the chairman of AmanahRaya Berhad.

He said he will take legal action against Ng for the allegation.