PETALING JAYA, July 26 ― Lembaga Tabung Haji (LTH) is the victim of false allegations that are harmful both to the fund and the Muslim pilgrims who are its contributors, said Prime Minister Datuk Seri Najib Razak.

Citing the purchase of 0.66 hectare land at Tun Razak Exchange (TRX) from 1Malaysia Development Bhd (1MDB) for RM188.5 million, he said the deal was an example of how the board's investments are well planned and appropriate.

"When LTH bought the land last year, it was made into an issue. But today, I was informed that someone is willing to pay RM2,200 per square foot for that land.

"That is already a profit if LTH were to sell that piece of land,” he said at the LTH Hari Raya luncheon at the Tabung Haji Hotel here.

The TRX land acquisition by Tabung Haji came under heavy criticism from opposition leaders, who alleged it was a bailout of 1MDB.

LTH initially said it would re-sell the parcel following public backlash, but has since said that it will use the land to develop high-end apartments.

Najib today also praised LTH for maintaining the same price for pilgrims to perform Hajj at RM9,980 per person.

"The government accommodates each time LTH comes to us to ask for a subsidy, and if you calculate, the government subsidises RM160 million which is equivalent to almost RM8,000 per person,” he said.

Later at a press conference, LTH group managing director Datuk Johan Abdullah said Tabung Haji has asked architecture firms to draw up the plan for the apartments.