Najib denies 1MDB stole RM3b from TRX, says loans repaid

Datuk Seri Najib Razak speaks to Reuters during an interview in Langkawi June 19, 2018. — Reuters pic
Datuk Seri Najib Razak speaks to Reuters during an interview in Langkawi June 19, 2018. — Reuters pic

KUALA LUMPUR, June 21 — Datuk Seri Najib Razak denied today Putrajaya’s claims that 1Malaysia Development Berhad (1MDB) had misappropriated money from TRX City Sdn Bhd (TRXC), saying 1MDB repaid the RM3 billion in loans last year.

The former prime minister said TRXC, which is the owner of the 70-acre Tun Razak Exchange (TRX) project and 486-acre Bandar Malaysia land and projects, had made about RM3 billion of inter-company loans over time to state investment firm 1MDB, which he said was practised by many companies.

“All these inter-company [loans] were repaid by 1MDB effective March 31, 2017, through a combination of cash repayments and a set-off against dividends paid by TRXC to 1MDB,” Najib wrote on his Facebook page.

“These repayments were carried out with the approval of MOF Inc and were properly reviewed and signed off by the auditors of TRXC in the March 31, 2017 financial statements.

“Since the TRXC was owned 100 per cent by 1MDB which was, in turn, owned 100 per cent by MOF [Ministry of Finance], surely 1MDB cannot be stealing RM3 billion from itself to service its own loan?” he added.

Finance Minister Lim Guan Eng claimed earlier today that 1MDB had misappropriated about RM3.1 billion from the TRX project to repay its loans.

Najib said the takeover of TRXC by MOF Inc for a nominal sum of RM1 effective March 31 last year was a key step in the broader 1MDB rationalisation plan.

“After taking over the two prime assets, MOF Inc then assumed payment of certain 1MDB liabilities from April 1, 2017, in return for the asset transfer,” said Najib.

“YB Lim himself admits that even with a further ‘up to’ RM 2.8 billion injection by MOF Inc, the TRX project will be worth at least RM7.8 billion and show a profit. Surely, it cannot be called a bailout if the money is to be used to generate a profit?” he questioned.

The former prime minister told Lim not to make factually incorrect statements as part of Pakatan Harapan’s “political vengeance” against him and the previous Barisan Nasional government.

“Not only is it unprofessional, it spooks investors in the currency, bond and stock markets. Surely, the well-being of our economy is much more important than the issuance of politically-motivated statements?” he added.

Related Articles