Don’t prejudge 1MDB probe, minister tells critics
(Malay Mail Online) – The public should allow the government to finish its investigation into 1 Malaysia Development Bhd (1MDB) first before making any conclusions, federal minister Datuk Paul Low said today amid public uproar over the financial scandals plaguing the state investment arm.
The minister who heads the prime minister department’s integrity portfolio made the assertion after he refused to comment on the controversial land deal between another state-linked firm Lembaga Tabung Haji (LTH) and 1MDB.
“As far as 1MDB is concerned I can’t comment too much as the AG is doing the audit.
“To me it’s for him..he is doing his job. So we just have to wait for him,” Low said when asked if the government should have been more transparent about the land deal.
Following the leakage of LTH’s alleged plans to buy two parcels of land from 1MDB, the pilgrimage fund was forced to make public its RM188.5 million purchase of a plot of land from the state investment fund a month ago.
Last Saturday, LTH said it would sell off the land by this week on the advice of Prime Minister Datuk Seri Najib Razak, despite only holding on to it for a month and initial plans to develop the land.
Amid controversy over the land deal, LTH explained that its purchase of the 1.56 acre land plot in TRX was for a luxury condominium development project, insisting that the price of RM2,774 per square foot was a good deal.
The TRX plot was previously expected to net LTH an annual return of 9 per cent and a total profit of RM177.5 million in three years, the fund said.
The purchase has since been criticised by many from both sides of the political divide as allegedly amounting to a bailout of 1MDB, with former Prime Minister Tun Dr Mahathir Mohamad even suggesting that the land deal be cancelled.
1MDB was reported to have amassed a staggering RM42 billion debt, with much of it inccured under questionable circumstances.
Fearing public backlash, Najib had ordered the AG to audit the firm.
A preliminary report on the findings is expected to be released in June.
