Najib’s statement was in response to Putrajaya saying earlier today that the government would inject up to RM2.8 billion to complete the Tun Razak Exchange (TRX) project in Kuala Lumpur.
Finance Minister Lim Guan Eng had said the decision was reached despite more than RM3 billion of government funds misappropriated from the company by 1MDB.
Najib pointed out that, as practised by many companies, approximately RM3 billion of inter-company loans were made, over time, by TRXC to 1MDB.
He explained that all these loans were repaid by 1MDB effective March 31 last year, 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 Ministry of Finance 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% by 1MDB which was in-turn, owned 100% by MOF, surely 1MDB cannot be stealing RM3 billion from itself to service its own loan?
“Once again, I caution YB Lim Guan Eng against making such factually incorrect statements as part of Pakatan Harapan’s political vengeance against me and the previous Barisan Nasional government,” he said in a statement posted on Facebook.
Najib said while he was happy that the government has 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”, he claimed that Lim was spreading “half truths and outright lies” in his statement today.
“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 queried.
The former finance minister further explained that the takeover of TRXC by MOF Inc for a nominal sum of RM1 effective March 31, 2017, was a key step in the broader 1MDB rationalisation plan.
He stated that 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’ 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 bail-out if the money is to be used to generate a profit?” he asked.
Najib also pointed out that while Lim had conveniently lumped together federal government commitments of the RM3.7 billion for both the TRX and Bandar Malaysia projects, he had failed to highlight the significant land asset value contained in both projects, and in particular the Bandar Malaysia project.
He added that if properly planned, marketed and developed, the Bandar Malaysia land alone could be worth RM30 billion.
TRX, which sits on a 70-acre plot of land in the heart of Kuala Lumpur, has been touted to become a leading centre for international finance and business.
It is one of two key real estate projects under the 1MDB umbrella owned by TRXC, the other being the 486-acre Bandar Malaysia development project.
Putrajaya says no choice but to inject RM2.8 billion to complete TRX project