TRXC to gather info before reporting misappropriation

PUTRAJAYA: TRX City Sdn Bhd, the master developer of the controversial Tun Razak Exchange (TRX) financial district, will gather adequate facts on the alleged misappropriation of RM3bil funds by 1Malay­sia Development Bhd (1MDB) before lodging a police report.

Speaking to The Star, TRXC chief executive officer Datuk Azmar Talib said that the company needed time to identify relevant information on the misappropriation of funds.

“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 said.

Earlier at a media briefing yesterday, Finance Minister Lim Guan Eng said that he had instructed the management of TRXC to lodge a complaint with the police and also the investigative panel of 1MDB.

He also said that since 2012, the Federal Government had guaranteed borrowings, extended advances and provided transfers to as well as purchased land from TRXC amounting to RM3.69bil.

“Of this RM3.69bil of transfers, a total of RM3.07bil were misappropriated by 1MDB, mainly for 1MDB loan repayments. As a result, TRXC does not have enough money to fulfil its obligations as the master developer of TRX,” said Lim.

Elaborating on the alleged RM3bil funds misappropriation, Azmar said that TRXC was not responsible for the transactions.

“At TRXC, we have always run our business operations based on best practices. However, previously we were part of the 1MDB group and the decisions were made by the parent company.

“The management of TRXC dealt with the development of TRX, while 1MDB was responsible for the financial management part. 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 TRXC to be moved out of 1MDB to the Finance Ministry because investors do not want to be associated with 1MDB,” he said.

He also pointed out that the RM2.8bil worth of funds to be injected by the Government for the infrastructure works of TRX should not be considered as a bailout. Instead, he described the amount as an “investment”.

When asked if former prime minister Datuk Seri Najib Tun Razak was involved in authorising the RM3bil funds misappropriation, Azmar declined comment.