IWH-CREC credibility at stake without proof of payment


By Tony Pua

The Iskandar Waterfront Holdings Consortium should be forthcoming with the facts and figures in its dispute with TRX City, instead of being cryptic and wishy-washy in its statements.

The conflicting statements issued by TRX City, a wholly-owned subsidiary of the finance ministry, and the consortium led by Iskandar Waterfront Holdings (IWH) have become a complete farce.

In December 2015, 1MDB had announced that it had sold 60% of its Bandar Malaysia interest to the consortium’s vehicle, IWH CREC Sdn Bhd (ICSB) for RM7.41 billion. CREC is the China Railway Engineering Corp.

TRX City, which owns Bandar Malaysia and has been taken over by the finance ministry, claimed the agreement had lapsed because the consortium failed to make the necessary payments despite repeated extensions.

In disputing TRX, ICSB said it had made all necessary payments thus far, as outlined in the share sale agreement (SSA), and is also capable of meeting future payments.

“To date, ICSB has fulfilled all the required payment obligations under the SSA on its part towards TRX. ICSB has sufficient financial resources and capabilities to ensure the smooth and successful execution and implementation of the development of Bandar Malaysia,” it said in a statement yesterday.

So who is telling the truth? To quote the cryptic ICSB, whose “factual matrix does not fully and accurately reflect the circumstances and conduct of the parties in the matter”?

Thankfully, the matter should be easily clarified and resolved. TRX City claimed money isn’t paid, while ICSB claimed it has, despite providing no evidence of payment.

Therefore, to put the matter to rest, instead of a verbal spat, all ICSB has to do is to provide specific details of (i) what they have paid, (ii) when they made the payments and (iii) what were the agreed payment terms.

Otherwise, there will be no credibility to the counter-claims made by ICSB. On the other hand, if ICSB is able to provide proof of payment in accordance with the agreed terms of the Bandar Malaysia sale, proving unreasonable termination by TRX City, I will certainly be demanding a response by TRX City.

However, if ICSB fails to substantiate its claims, then Malaysians can see clearly that ICSB is only trying to desperately salvage the broken deal and its heavily damaged reputation, which have caused heavy losses to the share price of all companies related to IWH.

Tony Pua is Petaling Jaya Utara MP and DAP Publicity Secretary.

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