Arul Kanda Kandasamy said there was nothing dubious about the matter as the investment arm’s Memorandum of Articles and Association Agreement (M&A) can be easily accessed by anyone. ― Reuters picKUALA LUMPUR, May 26 — The requirement to obtain the prime minister’s written approval for any financial deals undertaken by 1 Malaysia Development Bhd (1MDB) was never hidden from public knowledge, the troubled fund’s chief executive said today.
Arul Kanda Kandasamy said there was nothing dubious about the matter as the investment arm’s Memorandum of Articles and Association Agreement (M&A) can be easily accessed by anyone.
“These documents, along with the company’s financial accounts, have always been available to the public via the Companies Commission Malaysia,” Arul Kanda said in an email reply to Malay Mail Online.
“Any suggestion that these documents were leaked, or that the details contained within them have not been previously disclosed, are false and we regret that insinuations are being made to this effect,” the 1MDB group executive editor added.
Earlier today Malay Mail Online reported that the prime minister has the final say over any “financial commitment” undertaken by 1MDB’s precursor, Terengganu Investment Authority (TIA), according to TIA’s M&A.
Clause 75 of the agreement states that the management of the company and the determination of overall investment policies or decisions lies with the board of directors.
Arul Kanda, however, did not explain if 1MDB’s M&A remained the same as its precursor’s after the TIA became a federal agency.
1MDB was incorporated in 2009, after Prime Minister Datuk Seri Najib Razak announced the decision to turn TIA into a federal agency.
Clause 117 of the M&A inked on February 27, 2009, indicates that the prime minister must give his written approval for any of TIA’s deals, including the firm’s investments or any bid for restructuring.
The Auditor-General and Parliament’s Public Accounts Committee (PAC) are currently investigating 1MDB, a state-owned firm that has reportedly amassed debts of some RM42 billion in just six years since it was incorporated in 2009.
- See more at: http://www.themalaymailonline.com/malaysia/article/need-for-pms-approval-on-1mdb-deals-a-known-fact-ceo-says?ref=yfp#sthash.LuPCerhM.dpuf
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