Rafizi said 1MDB, which was responsible for the project, issued international bonds worth RM3 billion in 2013 for the development of TRX.

Yesterday, Second Finance Minister Johari Abdul Ghani said the ministry would take over the whole TRX project, which has a gross development value (GDV) of RM40 billion.

Rafizi, however, said that Putrajaya taking over the project was never in doubt, but he pointed out that Johari did not clearly explain how much of its debts the government would be taking over.

“He needs to verify whether the government will also be taking over 1MDB’s debts through the RM3 billion bonds issued in 2013 and managed by Goldman Sachs,” he said at a press conference at Invoke Malaysia today. Invoke is Rafizi’s NGO.

TRX was launched by Prime Minister Najib Razak in 2012 and is 1MDB’s main asset on a 70-acre land obtained by the government at RM194.1 million in 2010.

Rafizi, who is also PKR vice-president, said the government could not afford to take over the project, considering the situation of the economy, and other mega projects it is involved in.

“So many allocations are being cut. How is the government going to find enough money to fund this project with a GDV of RM40 billion?”

Rafizi also urged the government to come clean on the country’s debts at the next Parliament sitting.

This way, all parties will know the extent of the debts, especially with mega projects like TRX, Bandar Malaysia and MRT, still ongoing.

Last week, Johari had said the Finance Ministry (MoF) would take full control of TRX.

TRX’s master developer, TRX City Sdn Bhd, is a former subsidiary of 1MDB.

Johari said the assets under TRX City (formerly 1MDB Real Estate Sdn Bhd) had been transferred to the finance ministry and would result in the former becoming a shell company.

He said that the finance ministry had taken over 1MDB’s 40% stake in Bandar Malaysia and 40% stake in a development project within TRX with Australia’s Lendlease Group.

The Australian developer had purchased a 6.9ha plot in TRX.