The Malaysian Insight

DAP MP Tony Pua today asked Putrajaya if it will act against the 1Malaysia Development Bhd CEO for spreading fake news, following Arul Kanda Kandasamy’s remarks that the Tun Razak Exchange (TRX) and Bandar Malaysia are proof of the state investor’s “success”.

Pua said both mega projects had to be bailed out by the Finance Ministry due to problems faced by the previous contractors.

“So, the ‘success’ should be credited to the ministry, not 1MDB. 1MDB was the one that created the problems. All of this is fake news from Arul Kanda.

“I would like to ask Deputy Communications and Multimedia Minister Jailani Johari, who has said that all news not verified by the government is fake news – will the new (anti-fake news) bill, if approved, be used against Arul Kanda?”

It was reported that the 1MDB boss, at an event in Johor Baru on Monday night, said the state investor’s success is evident in the TRX and Bandar Malaysia projects.

“I just drove pass the air force base in Sg Besi. I could see only one big, wide, green field. So, what is the success of Bandar Malaysia?” said Pua.

He said the project has been left idle without a developer taking it up since the first contract with Iskandar Waterfront was cancelled due to its failure to serve its financial obligations amounting to RM7.41 billion.

Pua also noted the RM2.4 billion sukuk loan that 1MDB had taken out – 90% of which, a Public Accounts Committee report later showed, was never used in the development of either Bandar Malaysia or TRX.

He said although the development of TRX is now doing much better, Arul Kanda failed to mention that 1MDB had bought the land at the cheap price of RM64 per square feet (psf) and sold it to government-linked institutions for a ridiculously high price.

“Tabung Haji purchased a parcel of TRX land in 2015 at more than RM2,700 psf, while Lembaga Tabung Angkatan Tentera subsidiary Affin Bank purchased another parcel for more than RM4,500 psf.

“For the 3.4 acres of land that 1MDB previously sold to private property developer Indonesian Mulia Property Development for RM665 million, the Finance Ministry recently had to acquire a 51% stake in the project.” – March 22, 2018.