KUALA LUMPUR, Jan 14 — The government must explain why it gave 1Malaysia Development Berhad (1MDB) a RM1.0865 billion grant to relocate and upgrade the Sungai Besi military airbase as it is the state investment fund's responsibility to bear the costs of the operation, PKR's Rafizi Ramli said today.

Rafizi said the 2014 Auditor-General's report showed that 1MDB was given the grant for the purpose of "building a replacement building and obtaining equipment for the redevelopment of Sungai Besi."

"Why did the federal government approve the grant to 1MDB to finance a part of the operations when it is the financial responsibility of 1MDB according to its agreement with the federal government in exchange for obtaining the Sungai Besi military airbase lands for a low price?" the Pandan MP asked in a statement.

Rafizi said since 1MDB recently stated RM800 million had been paid to the contractor in charge for upgrading the military airbase, it must explain what has happened to remaining RM286.5 million of the grant given by the government.

"Even worse is that based on these figures, it is clear that the funds obtained by 1MDB through the issuance of sukuk (Islamic bonds) of RM2.4 billion and the federal government grant amounting to RM1.0865 billion (which in total amounts to RM3.4865 billion) is much more than the costs for the entire project set at RM2.7 billion.

"Till this day, 1MDB has not explained where is the remainder of the funds from the issuance of the RM2.4 billion sukuk bonds which was supposed to have been used to finance the relocation and upgrading works of the airbases," he added.

Rafizi has repeatedly demanded 1MDB list in detail the RM2.4 billion raised through sukuk (Islamic bonds) in 2014.

On Tuesday, 1MDB said RM800 million of the sum was used to cover the costs for the relocation of military bases as part of its undertaking to develop Bandar Malaysia, while the rest was for fees of issuing the bonds and capital expenditure of its real estate.

1MDB, as part of its rationalisation programme, had sold off parts of the land in Tun Razak Exchange and also a 60 per cent stake in Bandar Malaysia to a Chinese consortium led by China-owned Chinese Railway Express Corporation Limited (CREC) for RM7.41 billion.

Part of the deal includes transferring remaining liabilities 1MDB has in Bandar Malaysia, which includes the relocation of military bases and the liability of the sukuk bonds raised for the relocation.