KUALA LUMPUR, Jan 9 — DAP’s Tony Pua urged Putrajaya today to withhold approvals for 1Malaysia Development Berhad’s (1MDB) transfer of the Sungai Besi military airbase relocation, pending the state investment company’s return of the RM2.7 billion relocation cost to the government.

The opposition lawmaker pointed out that Putrajaya had already paid 1MDB the RM2.7 billion relocation cost in full when the state investment firm acquired the Bandar Malaysia land in 2012.

“In fact, 1MDB not only received payment for the relocation cost from the federal government, they took an additional RM2.4 billion sukuk bond, of which RM1.63 billion has been accrued (drawn down), to fund the same exercise!” Pua said in a statement.

“However, despite 1MDB receiving billions of ringgit from the government and the loan, only RM800 million of the PUKL relocation contract has been paid, with another RM1.9 billion still outstanding. The question that 1MDB must answer is, where did all the billions of ringgit paid by the federal government and borrowed from financial institutions go?” the Petaling Jaya Utara MP added, using the PUKL initials for the military airbase.

1MDB said in a statement Wednesday that the main relocation contract and development agreement for the military airbase was executed between 1MDB and Putrajaya for a contract value of approximately RM2.7 billion, including construction and relocation costs.

1MDB also said that it and the Iskandar Waterfront Holdings (IWH) — China Railway Engineering Corporation (CREC) Consortium intended to transfer the remainder of the construction costs for the military airbase relocation to the new special purpose vehicle, which will be 60 per cent owned by the consortium.

“Hence, if 1MDB were to receive payments from IWH-CREC for the relocation cost, such receipts must be returned to the federal government and not retained as undeserved income for 1MDB,” said Pua in response.

1MDB recently sold its 60 per cent stake in Bandar Malaysia to the Chinese consortium for RM7.41 billion, a deal that has been questioned by opposition lawmakers.