Malaysia's Finance Minister Lim Guan Eng said legal action will be taken to claim back the RM2.5 million in salary that was paid to former 1Malaysia Development Berhad (1MDB) chief executive officer Arul Kanda Kandasamy in advance, The Straits Times reported.

The Straits Times reported that Arul's salary package amounted to RM5 million for the period between January and June this year, and that then Treasury secretary-general Irwan Serigar Abdullah and former prime minister Najib Razak had signed off on the amount.

Half of that amount was paid to Arul, with the remaining RM2.5 million meant to be paid after June 30. The Finance Ministry has refused to pay the remaining RM2.5 million to Arul, who had his services terminated on June 28 for dereliction of duties.

Speaking to reporters in the Parliament lobby on Thursday (2 August), Lim said the government is seeking to reclaim the RM2.5 million paid and that the Attorney-General had been advised on the matter.

"We have instructed to claim back the RM2.5 million," Lim said, adding that a law firm has been appointed to make the claims.

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