(Aug 17): DAP's Tony Pua continued his public exchange with the president of troubled state firm 1Malaysia Development Berhad (1MDB), telling him to explain the US$1.1 billion (RM4.4 billion) "redeemed" Cayman Islands fund instead of apologising for mistaking the funds as "cash".

Pua, who is DAP's national publicity secretary, said Arul Kanda Kandasamy should also explain how much the "units", parked at the Singapore unit of Swiss private bank BSI, are worth.

"Arul Kanda must explain what exactly are these mysterious 'units' parked in BSI Bank Singapore. Are they backed by listed or private company shares, or by properties or other assets?

"More importantly, what is the bank-assessed valuation of these so called units?" he asked in a statement today.

Yesterday, Pua urged 1MDB to explain the "mystery" of the US$1.1 billion, but 1MDB shot back saying Arul had already taken full responsibility for the "miscommunication" on the matter.

Arul had previously said that the redeemed proceeds were “cash” held outside Malaysia, but Prime Minister Datuk Seri Najib Razak and Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah later told Parliament that the funds were in the form of "assets" and "units".

"Right-thinking Malaysians will surely agree with me that dismissing such a horrendous error as 'miscommunication' does not at all absolve Arul Kanda from providing us with the right answers," said Pua.

"Without answering the key questions, the 1MDB president’s excuse of 'miscommunication' is completely hollow as the rakyat are still left clueless as to whether this so called US$1.103 billion asset previously held in the Cayman Islands fund is worth anything at all today.

"Did 1MDB lose practically all of its US$1.103 billion?" asked the Petaling Jaya Utara MP.

1MDB's refusal to address the crucial questions, said Pua, will only convince the people that the state investment vehicle had lost all of the funds, leading to why tax payers are forced to bail out the company.

In its statement yesterday, 1MDB slammed Pua and told the MP to cease his "provocative chicken challenge", which it said undermined the probes into the troubled firm.

The state-owned company also rejected Pua's challenge to a public debate with Arul, saying it was not the right forum.

"It is clear that YB Tony Pua is attempting to undermine the various ongoing investigations through his 'chicken challenge'.

"This is not the appropriate forum to establish the truth. 1MDB will not be distracted and will continue full steam ahead with our rationalisation plan," it said.

However, Pua hit back, pointing out that it was Arul himself who had first made to offer to hold a dialogue with him.

"Firstly, let me remind 1MDB that it was Arul himself who made the offer to dialogue, which he subsequently refused to honour.

"Secondly and more importantly, how could I possibly undermine any investigations into 1MDB where there’s hardly anyone left investigating the company?

"The Parliamentary Accounts Committee (PAC) has been crippled. The Special Task Force investigating 1MDB and the PM has been declared 'illegal’. The Attorney-General has been sacked while the Auditor-General reports directly to the Finance Minister, who also happens to be Datuk Seri Najib Razak," he added.

Accused by 1MDB of making "recycled allegations" against it, Pua said he would continue to press and question the fund for continuing to give "recycled non-answers".

"As such, I will be the proverbial monkey who will not get off 1MDB’s back as long as the state-owned company refuses to be truthful and answer simple questions like the bank-assessed worth of these 'units' in Singapore," he added.

1MDB has come under public scrutiny mainly because of the whopping RM42 billion debts it racked up in the past six years.

1MDB has not been able to generate enough earnings to service its debts. This raised public concerns over some of its debt papers issued with the government’s letter of support – which means the government is responsible for the fund’s debt repayment should it default.

Consequently, the investment fund is currently stepping up efforts to hive off its assets, namely its power generation plants and land, to ease its extremely tight cash flow.

A probe by Parliament's Public Accounts Committee (PAC) was suspended after its Barisan Nasional members were promoted to the Cabinet in the recent reshuffle. New members will only be appointed after October 19 when Parliament reconvenes. – The Malaysian Insider