Thursday, April 14, 2016

Arul Kanda is the boy who cried wolf way too many times. Who would believe him now?

Yesterday,  I  asked  for  1MDB  President  Arul  Kanda  to  be  investigated  for  his  attempts  to cover  up  the  entire  1MDB  scandal,  particular  over  the  payment  of  US$3.51  billion  to  the British Virgin Islands incorporated “Aabar Investment PJS Limited” (Aabar (BVI)).

I  had  cited  the  Public  Accounts  Committee  proceedings  as  evidence  that  Arul  Kanda  was extremely  coy  and  economical  with  his  answers,  when  answering  the  straightforward questions  of  whether  1MDB  paid  billions  to  Aabar  (BVI)  and  whether  Aabar  (BVI)  was related to the Aabar Investment PJS of Abu Dhabi.  His shocking reply then was, “as far as he was aware, it is”.

Suddenly,  Arul  Kanda  is  now  trying  to  play  the  victim,  protesting  his  innocence, “categorically  and  unequivocally  deny  any  prior  knowledge  that  Aabar  BVI  has  been liquidated,  apart  from  what  I  have  read  in  recent  press  reports.  I  challenge  YB  Tony  to provide proof of this malicious accusation.”

Well,  Mr  1MDB  President,  you  were  publicly  notified  way  back  in  September  2015  by  The Wall  Street  Journal  and  other  critics  like  myself,  that  International  Petroleum  Investment Corporation  (IPIC)  did  not  have  record  of  any  of  the  US$3.51  billion  purportedly  paid  by 1MDB  in  its  financial  statements for  2014  and  2015  which  were  audited  by  Ernst  &  Young and published on the London Stock Exchange.

As  a  result,  I  had  warned  Arul  Kanda  and  1MDB  in  my  many  statements  since  September 2015  about  the  need  for  1MDB  to  confirm  the  whereabouts  of  these  payments  to  Aabar (Abu  Dhabi)  or  its  parent,  IPIC.    I  had  repeatedly  asked  1MDB  to  issue  a  joint  statement with  IPIC  to  provide  a  consistent  and  clear  clarification  on  where  the  US$1.4  billion “refundable  deposit”  collateral  parked  with  IPIC  as  well  as  the  US$993  million  payment  to buy back the above options from IPIC have gone to.

Instead, Arul Kanda chose to repeatedly insist that “1MDB cannot speak on behalf of Aabar or  IPIC  nor  can  we  comment  on  the  accounting  arrangements  of  third  parties”.And  of course,  he  waxed  lyrical  about  how  there  was  a  malicious  globally  coordinated  campaign against  1MDB  and  Malaysia.    Arul  Kanda  repeated  challenged  The  Wall  Street  Journal  and myself to “provide proof of this malicious accusation”.

He obviously didn’t care at all if the US$1.4 billion or the US$993 million is possibly missing then.

Worse,  Arul  Kanda  was  in  constant  and  direct  communications  with  IPIC  since  his appointment  as  the  President  of  the  company,  including the  on-going  debt-asset  swap arrangement which was signed with IPIC in May 2015 which is due to be completed in June 2016.

Now  that  it  has  indeed  been  proven  that  the  money  has  gone missing,  Arul  Kanda  turns around and says “Ooops! Honest to God, I wasn’t aware that Aabar Investment PJS Limited wasn’t related to IPIC and didn’t know that it has already been dissolved nearly a year ago
in June 2015.” (my paraphrase).  True to form, he challenged me “to provide proof of this malicious accusation”.

Further to that, he is now hinting that 1MDB might be a victim of a scam.

Sorry Arul, your cry wolf days are over.  Nobody believes you any more.  Not even BN MP Bung Mokhtar who has called for the police to conduct a criminal investigation against 1MDB to trace the missing funds.

And  if  indeed,  you  are  really  innocent,  that  you  didn’t  know  that  1MDB  parked  billions  of dollars  to  a  company  which has  ceased  to  exist, that  Aabar  (BVI)  was  not related  to  IPIC, that  a  massive  fraud  might  have  taken  place  throughout  your entire  14  months  in  1MDB, then you should be sacked anyway for being utterly stupid, negligent and incompetent.

Perhaps 1MDB should even consider charging you for misrepresentation on your resume as a “top investment banker” and “debt-restructuring expert”.

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