1MDB: No mismanagement of Bandar Malaysia Sukuk funds


(The Star) – 1Malaysia Development Berhad (1MDB) has strongly denied allegations by Pandan MP Rafizi Ramli, who alleged that proceeds from the Bandar Malaysia Sdn Bhd Sukuk programme (BMSB Sukuk) may not have been properly utilised.

In a press statement released on Tuesday, 1MDB said that the proceeds raised by BMSB have in fact been utilised in accordance with the terms of the Sukuk Programme Agreement.

Among the details in the agreement were the financing the Pangkalan Udara Kuala Lumpur (PUKL) relocation project, pre-funding the fees and expenses of the Sukuk Programme, funding the requisite financing reserve accounts; and working on capital requirements of 1MDB Real Estate Sdn Bhd, which is now known as TRX City Sdn Bhd.

“1MDB refers to an irresponsible statement made today by Rafizi, who seems intent on competing with Tony Pua to see who can mislead the Malaysian public more with sensationalist half-truths and unproven claims relating to 1MDB business affairs,” said the statement.

It also commented on Rafizi’s concern that a foreign company may be involved in the PUKL relocation project by saying that he had ignored the detailed statement issued by 1MDB on Jan 6 this year.

“Perbadanan Perwira Hartanah Malaysia (PPHM), a 100% subsidiary of Lembaga Tabung Angkatan Tentera is and continues to be, the Turn Key contractor to deliver the construction aspects of the PUKL Relocation.

“PPHM has, in turn, appointed over 50 qualified Bumiputra contractors as sub-contractors to deliver various aspects of the construction.

They reiterated that PPHM would continue to remain the designated contractor and continue to perform their role exclusively.

“These contractors have been approved by the relevant authorities and construction is supervised by relevant officials from the Defence Ministry and Home Ministry.

“As the construction will continue to be carried out by the current approved contractors, there is, therefore, no question of any impact on national security through the sale by 1MDB of its 60% interest in the Bandar Malaysia project.”