Friday 29 Mar 2024
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KUALA LUMPUR (Jan 6): Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today that the time is right for 1Malaysia Development Bhd (1MDB) to conduct a review of its business to meet its objectives in the future.

Husni was responding to 1MDB’s appointment of Arul Kanda Kandasamy yesterday (Jan 5) as its third chief executive officer (CEO) in just five years, replacing Mohd Hazem Abdul Rahman.

Arul had said in a statement yesterday that his first priority as president and group executive director, will be to undertake a comprehensive strategic review of 1MDB’s operations, whilst ensuring that 1MDB derive value from the high quality energy and property assets in the company’s portfolio.

“I am pleased to note [of] 1MDB’s announcement regarding the appointment of new management and a strategic review of the business.

“While 1MDB has achieved considerable success since its foundation, driving forward transformatory real estate projects and helping to consolidate Malaysia’s power sector, the company is now preparing to move on to a new phase, with the proposed listing of its energy business.

“Given these developments, this is the right time for 1MDB to conduct a review of its business, thereby ensuring it is prepared to meet its objectives in the future. I am confident that this process will reach a successful outcome, and I look forward to the result of the strategic review,” Husni said in a statement this evening.

The Edge Financial Daily reported today that 1MDB has failed for a second time, to pay a RM2 billion loan to Malayan Banking Bhd (Maybank) and RHB Bank Bhd.

Quoting sources, the daily said it has now been given until Jan 30, 2015, to settle the debt, which was originally due on Nov 30 last year.

The problem had reportedly been brought to the attention of Bank Negara Malaysia, it said, and that the group’s top executives, led by chairman Tan Sri Lodin Wok Kamaruddin, director Tan Sri Ismee Ismail and outgoing CEO Mohd Hazem, were given a dressing down by the central bank.

1MDB has borrowings of RM42 billion and suffered a negative cashflow of RM2.25 billion in financial year ended March 31, 2014 (FY14), with its debt servicing at around RM2.5 billion.

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