The Malaysian Insight

PUTRAJAYA must explain the secrecy over a sales and purchase agreement of the land in Tun Razak Exchange (TRC) between two government-owned entities, said a DAP lawmaker. 

Petaling Jaya Utara MP Tony Pua said Prime Minister Najib Razak in parliamentary replies had used confidentiality clause between buyer and seller when asked about the cost and size of the land in TRX, which Aroma Teraju Sdn Bhd, a wholly-owned subsidiary of the Finance Ministry, acquired from 1Malaysia Development Bhd (1MDB) in 2015. 

“There is only one reason for invoking this confidentiality clause and it has nothing to do with the purported ‘commercial considerations’. 

“It is to cover up the fact MOF paid over-the-top to buy back a fraction of the prime land it had sold at bargain basement prices to 1MDB in 2010,” he said in a press conference at Parliament today. 

In a written parliamentary reply on Monday, Najib cited agreement’s confidentiality clause to protect the commercial considerations of both parties. 

He also said the terms were consistent with the key terms used the market among other similar transactions. 

“The minister chose to ignore Aroma Teraju and 1MDB are wholly-owned by MOF,” Pua said. 

Pua said based on 2011 1MDB Financial Statements, the 70-acre TRX and was acquired from the government at the value RM194 million, or approximately RM64 per square feet in 2010. 

He added in the same year Aroma Teraju acquired the above-mentioned piece of land from 1MDB, the latter also sold other parcels of TRX land to other government related institutions. 

Lembaga Tabung Haji acquired 1.6 acres for RM188.5 million or more than RM2,800psf and Affin Bank, a subsidiary of Lembaga Tabung Angkatan Tentera (LTAT), acquired 1.25 acres for RM255 million or nearly RM4,700psf, he said. 

“I challenge 1MDB, Arul Kanda or the Finance Minister to deny allegations with facts and figures. 

“Otherwise, it would merely confirm the secrecy over a simple sales and purchase agreement between two government entities is really to cover up another one of the daylight robberies against the Malaysian tax-payers to bail out the debt-stricken 1MDB. 

“If Aroma Teraju paid anywhere near the prices paid by Tabung Haji or Affin Bank, it would mean that Malaysian tax-payers would have been ripped off beyond their wildest imagination. – November 8, 2017.