KUALA LUMPUR (Aug 2): The Finance Ministry will be filing a civil suit against Arul Kanda Kandasamy to recover RM2.5 million from the salary package paid to the former chief executive officer of 1MDB.
The payment from January to June, was half of Arul Kanda’s RM5 million salary package for this year, Finance Minister Lim Guan Eng told a press conference at the Parliament lobby today.
"We did not approve the RM2.5 million payment and legal action will be taken to recover the amount,” he said.
Lim added that other actions may be taken against Arul Kanda to recover more if he was found to have made decisions that were detrimental to 1MDB.
Lim said the civil suit would be made by an appointed law firm and that the Attorney-General's Chambers had been informed on the matter.
Yesterday, Datuk Seri Najib Tun Razak had defended the RM5 million salary package given to Arul Kanda.
The former Prime Minister said Arul Kanda was actually getting a lower salary serving at 1MDB than the amount he received while working with a bank in the United Arab Emirates (UAE).
In the meantime, Lim also claimed that there were no records to show that Arul Kanda was receiving a higher salary before he was appointed as president and chief executive officer of 1MDB.
"I want to ask whether Arul Kanda got RM10 million a year before he became President of 1MDB? I have no record of this,” he said, calling for Najib to show the 1MDB CEO’s previous salary record.