KUALA LUMPUR: Former Prime Minister Datuk Seri Najib Razak claimed that former president and chief executive officer of 1Malaysia Development Berhad (1MDB) Arul Kanda Kandasamy took a pay cut to join the company and managed to reduce its debts.
"He (Arul) was earning much more when he was working at a bank in the United Arab Emirates (UAE). He took a big pay cut to join 1MDB," Najib said when met at the Parliament lobby, here, today.
It was earlier reported that Arul Kanda was offered a pay package of RM5 million for a six-month period between January and June this year by the previous government.
Finance Minister Lim Guan Eng said this salary package was approved by then Prime Minister Najib.
"RM2.5 million has already been paid to him as an advance, and the remaining RM2.5 million was to be paid after June 30. Luckily there was a change in government. Otherwise this would have been paid to him as well," Lim had said.
Najib in defending Arul Kanda's salary package said, the latter had successfully reduced 1MDB's debts "from RM50 billion to RM30 billion".
"He has accomplished part of his responsibility. So you must see it in the context that Arul was paid much smaller then what he was earning before joining 1MDB," said Najib, adding that Arul Kanda's lawyer or associate would be issuing a statement on this today.
On allegations by a news report in the Wall Street Journal (WSJ) that Najib had frequently flown to China to meet businessman Low Taek Jho or Jho Low, Najib said: "No."