YOURSAY ‘Debts are common part of any businesses, default on repayment is not.’
1MDB boss: I'm coming in with eyes wide open
Kim Quek: First, 1Malaysia Development Berhad (1MDB) shouldn’t have been set up in the first place, as there are already too many of such government investment funds in this country.
Second, 1MDB has gone in the opposite direction of its professed mission - not momentarily but consistently throughout its existence. This indicates that the motivating force of 1MDB is beyond the reach of its CEO, who has been changed frequently.
Third, judging from the many negative reports and the many irrational major moves it has made, as well as its own audited reports, this body is stricken with pervasive mega corruption in addition to gross mismanagement.
How could a supposed sovereign wealth fund have come to be brought to its knees with such mind-boggling debts through such a scandalous process unless the political leadership responsible for it is rotten to the core?
1MDB is symptomatic of the ills that have plagued this regime, as there are many 1MDBs around, though to lesser extent. And the obvious solution is to go for a regime change.
Fairnessforall: Another thing to consider is whether new 1MDB boss Arul Kanda Kandasamy will be given a free rein to turn the company around.
If he has to take instructions and get approvals from someone else, then we are back to square one and I doubt he will be able to do anything much.
If Arul is half as good as Vikram Pandit, the CEO who turned Citibank from a loss-making bank to a profit-making one, then he may have a chance.
However, Vikram did come up with some serious changes and slashed salaries including his. He took home only US$1 per year until he turned the bank around.
Arul, I would have had more respect for you if you had admitted that the allegations were due to the mismanagement of the previous bosses of 1MDB rather than try to cover up for them by claiming it was a misunderstanding.
Are you saying that the allegations are not true and 1MDB did not make those huge losses?
Anyway, I wish you the best of luck in turning the company around. But please don’t take the rakyat for fools by making such claims to cover your bosses.
Abasir: What Arul should do, if he has the intellectual and moral wherewithal, is to come up with a point-by-point rebuttal of everything that has been stated and or implied by those he claims to have "a misunderstanding of the business" or who have raised issues "for purposes that aren't necessarily business related".
He could, given his much touted 'sharp mind' and 'business acumen', publicly debate those who Najib has threatened to sue.
But he will do no such thing because he is essentially a political appointee indentured to his remote controller not unlike Abdul Wahid Omar or Idris Jala.
Fair Play: Arul, sorry to have to say this. Yes, you come in with your eyes wide open. But can you really see? Only time will tell.
From what I understand about your background, you are just a money man, hopefully to get 1MDB out of its financial mess as soon as possible, such as accelerating its delayed listing.
About your operational and top level management experience in a complex organisation, you are just a rookie.
Just take a look at Malaysia Airlines (MAS). See what has happened to the once-upon-a-time glorious global brand because of people lacking operational experience at the helm.
Foodforthought: Debts are common part of any businesses, default on repayment is not. Likewise, revaluation of assets does not make a company profitable.
Naive 'syok sendiri' comments will not make the problem go away. 1MDB has defaulted on the RM2 billion loan repayment. It has also revalued its 'assets'. Unfortunately it cannot devalue its liabilities.
Not Smart: Arul, it appears that the current situation of 1MDB is akin to fresh-cut sugarcane that had its juice squeezed out and only the fibres remain. You are now called in as president and group executive director to restore its juice. I wonder who sucked it dry?
Maybe the rest were, or are there, with their eyes tightly closed whilst performing their work. Make sure they too will now keep their eyes wide open. Don't allow them to hijack your ideas and plans and later boot you out and claim success - if you ever succeed.
Isana: Good luck on this fast sinking vessel. Arul, get your life jacket ready. It will go down with Premier Najib Abdul Razak, or Najib will go down with it. Either way, it's going down.
Sirach: Arul is mouthing all the platitudes that a new CEO taking on a very challenging job would say. Terms like "strategic review", "excellent assets", "exciting projects in the pipeline" are standard management-speak.
He claims that the allegations made against the company are due to a "misunderstanding of the business" and are not "necessarily business-related". Let's hope he's right.
The thing is, if so, why has the company dragged its feet and not come clean and clearly addressed each allegation?
1MDB chairperson Lodin Wok Kamaruddin's attempts to do so recently were greeted with derision. Without sounding too jeremiad, it's fair to say that Arul is in a no-lose situation.
He comes into a company riddled with problems with a mandate to clean up. If he succeeds, his reputation will soar. If he does not, he can blame it on legacy issues he inherited. Meanwhile, he will be earning a king's ransom. One lucky fellow, Arul.
Malaysia Ku: Will you be sucked into the murky and shady deals of Umno Inc? Will you do a forensic review of the highly questionable investments?
Are you even prepared to call a spade a spade and terminate appointments of those politically-connected positions, including initiating criminal proceedings like they do in the west against Morgan Stanley and other big financial institutions? Dare you even question Najib's role in this fiasco?
If you are not prepared to perform an unadulterated and totally independent audit without fear or favour, your role there is then merely cosmetic, as the perpetrators hide behind your "independent expert" status.
Pputeh: To be fair, we have to give him a chance. Arul, your view on how long it will take to do the turnaround. Time frame please.
Anonymous_1392114217: Stop praising how beautiful 1MDB's assets are and its excellent group of people.
Right now you have only three weeks to bring back the RM4 billion by the end of this month from the Cayman Islands to settle the loans which were twice defaulted.
If you can't, I advise you just tender your resignation on the Feb 1 before the massive debts tarnish your curriculum vitae.
Telestai!: This job is tough enough on its own with the high gearing and questionable acquisitions.
With the political future of Najib and his associates riding high on this organisation, it will take a maverick of sorts to turn this outfit around.
I hope Arul is that maverick we all have been waiting for. All the best, Arul.
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