Citing anonymous sources, a news portal said the payment was agreed by the Finance Ministry prior to placing Arul Kanda on garden leave until his contract expires on June 30. — Picture by by Hari Anggara

KUALA LUMPUR, June 1 — Datuk Seri Najib Razak’s administration had agreed to pay 1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy a RM5 million ex-gratia payment, Malaysiakini reported today.

Citing anonymous sources, the news portal said the payment was agreed by the Finance Ministry prior to placing Arul Kanda on garden leave until his contract expires on June 30.

Malaysiakini said it has also sighted correspondence between Najib, who was then prime minister and finance minister, and former treasury secretary-general Tan Sri Irwan Serigar Abdullah.

The sources cited had claimed that half of the payment was to be paid after Arul Kanda’s contract expires.

None of the allegations could be verified at the time of writing.

Malaysiakini could not reach Najib, Irwan or Arul Kanda for comment, nor could it confirm if Arul Kanda had received half of the payment.

Last week, Finance Minister Lim Guan Eng said Arul Kanda had replied he was on garden leave and unaware of the 1MDB’s financial situation, and Lim had labelled the latter “utterly dishonest and untrustworthy”.

In response, Arul Kanda insisted the alleged wrongdoings at the firm occurred before he was recruited.

He also threatened to sue Lim over the latter’s remarks.

1MDB is wholly owned by the Finance Ministry, and Arul Kanda is its sole current employee.