Remote Webinar Mar 2024
human resources online

Government to claim back RM2.5m in salary advance from ex-1MDB CEO

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.

Photo / 123RF

Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!

Related topics

Free newsletter

Get the daily lowdown on Asia's top Human Resources stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's Human Resources development – for free.

subscribe now open in new window