By Khairul Khalid
No investment decision has been made to purchase the controversial Tun Razak Exchange (TRX) land from Tabung Haji, said pension fund Retirement Fund Inc (KWAP).
“KWAP today confirms that no investment commitment has been made on TRX. KWAP continues to look at domestic property investments that meet the fund’s mandate of delivering sustainable returns over the long term.
“All investments would have to meet KWAP’s minimum investment returns and risk parameters as governed by its board,” said KWAP in a media statement.
Two days ago, quoting sources, The Star reported that 1Malaysia Development Bhd (1MDB) has signed a heads of agreement to sell 1.5 acres of TRX land to KWAP.
According to the report, KWAP will be paying about RM2,300 per sq ft (psf) or a total of RM155 million for the land intended for its new headquarters. This price would be around 15% lower than what Tabung Haji had paid for the same parcel of land just weeks ago at RM2,773 psf.
KWAP’s potential acquisition is widely seen as a move to appease rising public anger about Tabung Haji’s perceived bailout of ailing 1MDB through the land deal.
Last week, documents were leaked detailing Tabung Haji’s proposed purchase of two parcels of 1MDB’s TRX land, worth a combined RM772 million. Although Tabung Haji’s chairman initially denied the deal, the pilgrim fund subsequently confirmed the purchase, albeit at a smaller scale worth RM188 million.
The confirmation of the deal immediately attracted harsh criticism from all quarters, especially Tabung Haji depositors who were worried that their savings were being used to rescue heavily indebted 1MDB.
Ismee Ismail
There were also accusations that Tabung Haji were forced to pay an inflated price for the land. 1MDB had purchased the land at approximately RM64 psf in 2011. Others pointed out that there were clear conflicts of interests between Tabung Haji and 1MDB’s top management in the land deal.
Tabung Haji’s group managing director and CEO Ismee Ismail is also on 1MDB’s board of directors. Tabung Haji’s deputy CEO Johan is chairman of Edra Energy, 1MDB’s power plants division. Abdul Samad Alias is a member of both 1MDB and Tabung Haji’s investment panels.
After intense public and political pressure, Prime Minister Najib Abdul Razak advised Tabung Haji to sell the land, within just weeks of purchasing it, despite the pilgrim fund’s claims that the deal was made on sound commercial basis and would be a profitable venture.
You must be logged in to post a comment.