Arul Kanda says looking forward to attending PAC hearings on 1MDB

1Malaysia Development Bhd president and group executive director Arul Kanda Kandasamy says he is looking forward to attending the Public Accounts Committee (PAC) hearings and for his answers to be part of the public record.

He said there is no need for him "to lie or cover-up what has happened in the past, as has been alleged by those who make sensationalist claims to drive their own political agenda."

"Accordingly, I look forward to being questioned in detail on this matter at the upcoming PAC hearings and for my answers to be part of the public record, to conclusively put this matter to rest," said Arul Kanda.

To recap, PAC's hearing on 1MDB has been postponed to a later date that is yet to be determined. The earlier dates were Aug 4, 5, 6, 17 and 18 as well as Sept 8 and 10, 2015.

The PAC is left with just nine members, after four others including its chairman were appointed as Cabinet members on July 29.

The appointment of the PAC chairman and its members is scheduled to be made after the Select Committee members, who are responsible for appointing the PAC members, are replaced and appointed during the next parliament session that starts on Oct 19, 2015.

"In my capacity as President, I answer to the Board and the shareholders of 1MDB. My strong track record speaks for itself and my only professional agenda is to fix the challenges in 1MDB," said Arul Kanda in a two-page press statement that among others replied to the latest allegations from Sarawak Report, an online blog currently banned in Malaysia, which accused him of lying about cash in the bank in its latest article.

He said whilst Sarawak Report has published a number of alleged 1MDB related documents in the past, "I can confirm that -- in this particular case -- it appears to have published an authentic 1MDB document, namely minutes of a Jan 12, 2015 Board meeting."

Arul Kanda said it was the first 1MDB Board meeting he attended, held exactly a week after he joined the company on Jan 5, 2015.

At the meeting, he acknowledged that he stated to the Board, based on his understanding of events that occurred before his time, that the redemption of fund units happened in cash for an amount of US$940 million.

However, upon further investigation and verification, it became clear that this was a misunderstanding, which he then clarified to the Board and the Finance Ministry.

This clarification is clearly recorded in subsequent Board minutes and can be verified, he said.

"On Jan 13, 2015, I confirmed via a press statement that the remaining amount of US$1.11 billion had been redeemed, in full. What was unfortunately not made clear, was that the redemptions happened partly in cash and partly through the sale of fund units, with cash payment being deferred."

He said it is this important distinction which caused a misinterpretation of his statement, first during a media interview on Feb 9, 2015 and subsequently by the Finance Ministry, in a Parliamentary answer on March 12, 2015.

"I have explained in detail the sequence of events to the National Audit Department and to 1MDB's auditors, Deloitte, as part of their thorough and professional review of 1MDB's past transactions.

"In addition, I have openly and publicly taken full responsibility in June 2015 for the misunderstanding on this matter i.e. the buck stops with me," he said.