TRX doesn’t need a bailout and can be profitable, says Najib

Updated 5 years ago · Published on 21 Jun 2018 11:45PM · 6 Comments

The Pakatan Harapan government will inject RM2.8 billion into the Tun Razak Exchange to cut its losses. – The Malaysian Insight file pic, June 21, 2018.

FORMER Prime Minister Najib Razak said the Tun Razak Exchange (TRX) project does not need a bailout, pointing to Finance Minister Lim Guan Eng’s remark today that it could be profitable.

The takeover of TRX’s master developer TRX City Sdn Bhd (TRXC) by Ministry of Finance Inc (MOF Inc) for a nominal sum of RM1 on March 31, 2017, was a key step in the broader 1Malaysia Development Bhd rationalisation plan, Najib said in a Facebook post.

“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.

“Lim himself admits that even with a further ‘up to’ RM2.8 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?” Najib said.

At a press conference today, Lim said the cabinet decided to complete the TRX project and that up to RM2.8 billion would be injected to ensure its completion.

The project could turn a small profit on completion and recoup the RM3.7 billion that was paid out earlier, Lim said.

Najib said Lim “conveniently” lumped together federal government commitments of RM3.7 billion for both the TRX and Bandar Malaysia projects, but failed to highlight the significant land asset value contained in both projects, in particular the Bandar Malaysia project.

“If properly planned, marketed and developed, the Bandar Malaysia land alone could be worth RM30 billion,” he said.

More importantly, Najib said, no money from TRXC was misappropriated by 1MDB.

“As practised by many companies, approximately RM3 billion of inter-company loans were made, over time, by TRXC to 1MDB.

“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.

“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 TRXC was owned 100% by 1MDB which was, in turn, owned 100% by MOF, surely 1MDB cannot be stealing RM3 billion from itself to service its own loan?”

Najib said he was happy that the government had decided to continue with the TRX project “which will bring tens of thousands of new jobs and establish a world-class financial centre right here in Kuala Lumpur”.

However, he accused Lim of “spreading half-truths and outright lies in his statement today about TRXC”, which owned the 28.3ha TRX and 196.7ha Bandar Malaysia land and projects.

He cautioned Lim against making factually incorrect statements as part of “the PH’s (Pakatan Harapan) political vengeance against me and the previous BN (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?” – Bernama, June 21, 2018.

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Comments

  • Tell me please which one spooks investors more? Kisah benar or cerekerama? Democracy or kleptocracy. LOL

    Posted 5 years ago by Wire bug · Reply

  • if mof did not step in surely 1MDB would be insolvent
    insolvent means meeting debts as they fall due
    not talking about future profitability
    did txrc pay commercial price for the land
    "BN government had sold 70 acres of TRX land to 1MDB at a cheap price of only RM64 per square feet, when the market price was RM2,700 per square feet in 2010"
    surely without 1mdb govt could have sold the IN THE OPEN MARKET AND ENRICHED ITS COFFERS

    Posted 5 years ago by Satkunabalan Sabaratnam · Reply

  • GOD, IS HE THAT STUPID?? "injection..when the project is worth...will be profitable.. IS NOT A BAILOUT???"... Who taught him finance? Sound like his professor where Professor. Jho Low, Professor Tarek Obaid, and Professor Prince Turki..HE WAS MINISTER OF FINANCE????

    Posted 5 years ago by Bigjoe Lam · Reply

    • Unfortunately he was the finance minister, that's why we are now in this shit! He only know how to spent but not how to calculate.

      Posted 5 years ago by Johnnie lim · Reply

  • Najib-- stop your shits !!! we are not interested for a "lanun" to talk anything about Malaysia or developement. You are totally blank of cerebral capabilities as it has shown thru history that the lanun piracy DNA are only for plundering, stealing, robbing , telling lies and wayward in attitude. We are waiting for your trial on all your misdeeds and waiting for a final verdict which the rakyat will calling out vociferously on capital punishment for you.

    Posted 5 years ago by Lee Lee · Reply

  • and you will be going to jail for a very long time so save your energy, you will be needing it soon.

    Posted 5 years ago by Richard Chapbell · Reply