TRX City Sdn Bhd (TRXC) says it will lodge a police report on allegations that some RM3.07 billion meant for TRX development were used to repay 1Malaysia Development Berhad (1MDB) loans.
- Due to misappropriation of funds, TRXC did not have enough money to complete TRX project
- By injecting additional RM2.8 billion into TRXC:
– TRXC has enough money to complete TRX project
– RM3.51 billion compensation need not be paid for not completing TRX project
– TRX won’t be an eyesore of a “massive abandoned mega project”
This was following an announcement on Thursday (June 21) by Finance Minister Lim Guan Eng who said that the TRX project would be completed despite more than RM3 billion of government funds were misappropriated from TRXC by 1MDB.
Lim also said he had instructed TRX City chief executive officer Datuk Azmar Talib and the chief operating officer Tan Hwa Min to lodge a report with both the police and the special 1MDB probe panel.
Azmar also thanked the Government for its confidence in TRX as Kuala Lumpur’s new financial district.
“Our investors will view this commitment positively as it confirms the Government’s pro-business plans,” he said.
He said it aimed to deliver the project on schedule and within budget.
The Finance Ministry will be injecting up to RM2.8 billion to prevent further losses and to ensure the completion of the project.
Lim said this was to better than having a “massive abandoned megaproject” in the heart of Kuala Lumpur.
He also said that this would prevent the payment of RM3.51 billion in compensation if the project is stopped.
TRXC was formerly known as 1MDB Real Estate Sdn Bhd and a subsidiary of 1MDB, before the unit was transferred to the MoF on March 31 last year on the advice of the Parliamentary Public Accounts Committee after TRXC was unable to secure land sales or bank financing due to its association with 1MDB.
Lim said due to the misappropriation, TRXC did not have enough money to fulfil its obligation as the master developer for TRX, hence the government had agreed to inject an additional RM2.8 billion into TRXC to complete the TRX project.
Besides the 70-acre TRX project, TRX City owns the 483-acre Bandar Malaysia development.