TRX developer lodges police report over RM3 billion money to 1MDB

KUALA LUMPUR: The company in charge of building the Tun Razak Exchange (TRX) today lodged a police report on the transfer of some RM3 billion of its funds to 1MDB within a period of five years.

The Finance Ministry-owned TRX City Sdn Bhd (TRXC) said the transfers were made based on instructions from 1MDB and were “diverted from their intended use”.

“A total of RM3 billion was transferred from TRXC to 1MDB between mid-2012 to early 2017, when it was a subsidiary of 1MDB, on the understanding that it would be subsequently repaid to TRXC,” the company said in a statement.

Last week, the Pakatan Harapan government decided to inject up to RM2.8 billion to complete TRX.

It said the decision was taken so as not to spark concerns among local and foreign investors “who have put in billions of ringgit” in the project.

Former prime minister Najib Razak has denied that funds had been misappropriated by 1MDB.

Instead, he said some RM3 billion of inter-company loans were made, over time, by TRXC to 1MDB, which were repaid by 1MDB by cash and dividends paid by TRXC to 1MDB.

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

No money from TRXC misappropriated by 1MDB, says Najib