THE Malaysian government is “slowly and silently” taking over the debts of 1Malaysia Development Bhd (1MDB), PKR said.

PKR vice-president Rafizi Ramli said the government had reacquired a stake in the Signature Tower project at Tun Razak Exchange.

The Pandan MP said 1MDB’s statement on May 13, 2015 had announced the sale of the TRX land to the Mulia Group from Indonesia to build the Signature Tower.

“1MDB sold the land at RM665 million three years ago. That’s the tower (named The Exchange 106) that is being built on TRX land.

“That is the only project that is ongoing on the valuable land given to 1MDB by the federal government,” Rafizi said in a statement today.

He was commenting on treasurer-general Dr Mohd Irwan Siregar Abdullah’s announcement that 1MDB would be shut down once its debts had been settled.

Irwan said the debts would be paid from revenue obtained from the government’s mega projects such as the Tun Razak Exchange (TRX) building, the East Coast Rail Link (ECRL) and the second Mass Rapid Transit (MRT) project.

“Soon, residents who own a place in the TRX city will pay rent, and we will also sell land plots of Bandar Malaysia which will be developed with public transport such as high-speed train, ECRL and MRT,” Irwan was quoted saying in the New Straits Times.

Rafizi said Irwan had purposely mentioned the rent to be paid by TRX residents even though it was a private project because the Malaysian government had reacquired stakes in the project.

He said a check with the Commission of Companies showed that a subsidiary of Mulia Group in Malaysia, called Mulia Property Development Sdn Bhd (1139949-K.), undertaking the project at TRX, was partly owned by a Malaysian firm.

“Mulia Property is 49% owned by Indonesian firm Mulia Internasional Limited, which holds 245,000 shares. 

“The other 51% is owned by Malaysian company MKD Signature Sdn Bhd, which holds 255,000 shares.

Rafizi said checks into MKD Signature showed it was owned by a local company called Sentuhan Budiman Sdn Bhd.

He said there were no information on the company shareholders.

“But all three companies involved in The Exchange 106 project have the same directors, one Dr Yusuf Ismail (620514-11-5081) and Dr Mohamad Isa Hussain (580311-07-5215).

“Isa is the Finance Ministry’s Treasury assistant chief secretary. Yusuf is the ministry’s strategic investment division assistant secretary.”

Rafizi said although Sentuhan Budiman’s shareholders information was ““hidden from public search”, the company was listed as government-owned.

This was stated on page 97 of the federal government’s 2016 financial report that was tabled in the Dewan Rakyat last year during the announcement of Budget 2018.

“I have shown solid proof how the (prime minister) Najib Razak administration had put up an act on the success of 1MDB in attracting foreign investors to develop its projects that will pay off 1MDB’s debts.

“What happened at The Exchange 106 is different. Quietly, the project belongs to the federal government via MKD Signature that holds a 51% stake in the development company.

“That is why I disagree with Irwan that 1MDB will be able to pay off its debts on its own,” he said.

Rafizi said what was clear was that the Najib administration was using several investors as a smokescreen to hide from the people that the federal government was slowly and silently taking over 1MDB’s debts. – February 28, 2018.