KUALA LUMPUR, May 27 — Datuk Seri Najib Razak must respond to Datuk Seri Ahmad Said’s claim that he was removed as Terengganu mentri besar for halting deals with the predecessor of 1 Malaysia Development Bhd, a PAS MP said today.Datuk Seri Ahmad Said speaks to reporters during press conference at his house. — Photo by Yusof Mat Isa
Datuk Seri Ahmad Said speaks to reporters during press conference at his house. — Photo by Yusof Mat Isa

Kuala Terengganu MP Datuk Raja Kamarul Bahrin Shah Raja Ahmad pointed out that Ahmad had claimed recently that state government’s co-operation with the Terengganu Investment Authority ended several years back after the fund attempted to use the state’s oil income to secure loans.

“There was an attempt to collateralise future earnings of Terengganu oil and gas that was aborted because of his (Ahmad) disagreement,” Raja Kamarul said.

The PAS lawmaker said this was then denied by current MB  Datuk Seri Ahmad Razif Abdul Rahman, warranting the prime minister’s clarification on the issue.

“Was this the actual reason why Ahmad Said was removed?”

Earlier this month, Ahmad claimed that his administration’s opposition to the plan by TIA was the reason PM Najib was angry with him.

He further claimed that his request that the state be reimbursed for its RM1 million investment in the fund resulted in a “scolding” by the prime minister.

Ahmad Said told the state assembly that TIA’s paid-up capital was initially paid for by him and the state government, but they later decided to exit the deal after they came across some “hanky panky” in the investment fund.

Ahmad, who was named as Terengganu mentri besar for a second term in 2013, was forced to step down from office mid-term last year.

He and two other Umno lawmakers then briefly plunged the state into a constitutional crisis last year after the announced their resignation from Umno. They rejoined several days later.

The TIA was formed in 2008 to manage the state’s oil royalties and invest the money in local and overseas markets.

It was then turned into the 1MDB federal agency by Najib in 2009.

Since then, 1MDB has been dogged by negative publicity over its finances and debt, and most recently cash flow problems that saw it struggle to meet a RM2 billion loan payment.

The allegations surrounding the firm and its reported RM42 billion in debt prompted former prime minister Tun Dr Mahathir Mohamad to demand Najib resign as the head of the government.