Malaysia

I don’t know if Nazlan approved 1MDB’s Maybank loan: Arul Kanda

Star witness admits to have worked closely with its investment unit to consolidate RM4.17 bil loan

Updated 4 years ago · Published on 26 Aug 2022 12:37PM

I don’t know if Nazlan approved 1MDB’s Maybank loan: Arul Kanda
Co-accused Arul Kanda Kandasamy (pic) has insisted that he had never dealt with Datuk Nazlan Mohd Ghazali personally for 1Malaysia Development Bhd’s RM4.17 billion loan consolidation with Maybank. – ABDUL RAZAK LATIF/The Vibes pic, August 26, 2022

by Danial Dzulkifly

KUALA LUMPUR – Former 1Malaysia Development Bhd (1MDB) chief executive Arul Kanda Kandasamy has no personal knowledge of whether justice Datuk Nazlan Mohd Ghazali, in his previous role in Maybank, had any involvement in the bank’s loan to the sovereign wealth fund.

During the trial of Datuk Seri Najib Razak’s alleged role in the tampering with the 2016 auditor-general 1MDB report, former 1MDB chief executive Arul Kanda Kandasamy explained that he was working closely with Maybank Investment to consolidate the firm’s RM4.17 billion loan to the bank which was in default.

This was part of his efforts to explain the company’s financial position to the Public Accounts Committee (PAC), which held ongoing hearings on 1MDB in 2015.

During cross-examination, Arul Kanda explained that he was dealing with several officers from Maybank Investment at the time, including personnel from their loan and legal department.

However, when pressed further by defence counsel Tan Sri Shafee Abdullah on whether he had dealt with Nazlan during the process, Arul Kanda answered he had never dealt with Nazlan personally.

Shafee: “Who is the general counsel of the Maybank group?”

Arul Kanda: “Nazlan.”

Shafee: “What is his full name?”

Arul Kanda: “I do not know, sorry.”

Shafee: “Was it Nazlan Ghazali?”

Arul Kanda: “Yes, but I never met him or interacted with him.” 

Shafee: “But you know ultimately the approval must go through him (Nazlan), on the legal side?”

Arul: “I’m not aware of their internal processes but I suspect somebody somewhere has to approve (the loan).”

Later during re-examination, lead prosecutor Datuk Seri Gopal Sri Ram questioned whether Arul Kanda had any personal knowledge that Nazlan was involved in the loan process, he answered “no”.

Nazlan was the general counsel and company secretary for the Maybank Group from 2006 to 2015.

Previously, in the SRC International Sdn Bhd corruption appeal, Najib’s lawyers had argued that “justice was compromised” as there was a real danger of bias by Nazlan over his previous role in Maybank and sought to adduce new evidence to this effect.

The defence at the time had posted that Nazlan was “privy” to many aspects of the evidence which are contested issues in the trial due to the latter’s supposed involvement in Maybank’s RM140 million loan to Putra Perdana Development Sdn Bhd and RM4.17 billion loan to 1MDB.

However, this was rejected by the Federal Court, and Najib was convicted to 12 years in prison and fined RM210 million.

In this trial, Najib is charged with abusing his position as prime minister and finance minister to order amendments in February 2016 to the auditor general’s report on 1MDB before its finalisation and presentation to the PAC in avoiding any civil or criminal action against him – while Arul Kanda is charged with abetting Najib in the report’s tampering.

While Arul Kanda has given his testimony as a star witness in the prosecution’s case, he is still a co-accused in this trial. – The Vibes, August 26, 2022

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