In a scathing indictment, Finance Minister Lim Guan Eng accused the 1MDB president and chief executive officer Arul Kanda Kandasamy of being "utterly dishonest and untrustworthy."

This was after Arul Kanda briefed Lim on the state of the firm, which the minister found unsatisfactory.

"I have found Arul Kanda to be utterly dishonest and untrustworthy.

“I have instructed the legal advisers of the Finance Ministry to review his position as 1MDB president," Lim told a press conference in Putrajaya this evening.

According to the finance minister, Arul Kanda informed him that he was unsure about the value of 1MDB's US$2.5 billion (RM9.8 billion) "fund units" investments, or if these even existed.

"Arul Kanda's response was utterly shocking and preposterous because prior to the change of government, he toured the country preaching the financial viability of 1MDB and the soundness of its investments.

"In fact, Arul Kanda is today singing a completely different tune from the song he sang to the Public Accounts Committee as recorded in the Hansard," he added.

Lim said the RM9.8 billion was significant as it would have helped settle 1MDB's debt.

[Read: Arul Kanda Kandasamy's response]

Yesterday, the finance minister revealed that the previous BN government spent around RM7 billion bailing out 1MDB despite the company's insistence that it could repay its own debt.

The new Pakatan Harapan government has accused its predecessor of trying to cover up the multi-billion ringgit 1MDB scandal and has vowed to uncover the alleged wrongdoings.

In total, 1MDB previously claimed it held approximately RM9.8 billion in "fund units" with US$940 million being held by its subsidiary Brazen Sky Ltd and another US$1.56 billion by a separate subsidiary 1MDB Global Investment Ltd (1MDB GIL).

However, the US Department of Justice claimed the "fund units" were "relatively worthless" and was a front for money that had been stolen.

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