TRX City to gather facts before lodging report on missing RM3bn

PETALING JAYA (June 22): TRX City Sdn Bhd will gather the facts surrounding the alleged misappropriation of RM3.07 billion in funds earmarked for the Tun Razak Exchange (TRX) by 1Malaysia Development Bhd (1MDB) before it files a police report on the matter, said its CEO Datuk Azmar Talib.

“Currently, we have been instructed to gather enough information on the issue. So, let us gather the evidence first, then we will decide if there is a case or not.

“After that, we will get further instruction [from the government],” he told The Star.

According to Finance Minister Lim Guan Eng, the federal government had guaranteed borrowings, extended advances, provided transfers and purchased land from TRX City – all these totaling RM3.69 billion, of which RM3.07 billion were misappropriated by 1MDB to service the fund’s debts.

“As a result, [TRX City] does not have enough money to fulfill its obligations as the master developer of TRX,” he said.

Azmar said prior to TRX City becoming a unit under the Finance Ministry, it was a part of the 1MDB group, where TRX City was responsible for the development of the 70-acre international financial district while 1MDB was responsible for the financial management of the project.

“So, anything relating to misappropriation of funds, was beyond us.

“Guided by our best practices as well as the request from the investors of TRX, we requested that [TRX City] be moved out of 1MDB to the Finance Ministry because investors do not want to be associated with 1MDB,” he said.

He also stressed that the RM2.8 billion funds by the government for TRX’s infrastructure works should be seen as an investment as opposed to a bailout.