Should Tabung Haji cancel its land deal with 1MDB?

Question

Accepted Answer

Tabung Haji Should Reconsider Its Land Deal with 1MDB Amidst Controversy

Lembaga Tabung Haji (LTH) faces significant pressure to cancel its land purchase agreement with 1 Malaysia Development Bhd (1MDB). Concerns have been raised by prominent figures, including Perkasa chief Datuk Ibrahim Ali and former prime minister Tun Dr Mahathir Mohamad, regarding the inflated price of the land and the potential implications for the depositors' funds.
Questions Raised Over Land Valuation and Purpose

Datuk Ibrahim Ali has specifically warned LTH against proceeding with the agreement, highlighting that the land is being sold at a price considerably higher than its original purchase price. This discrepancy suggests that LTH might be inadvertently providing financial assistance to 1MDB through the transaction. Ibrahim Ali further questioned why LTH, as a government-linked company (GLC), did not utilise the Land Acquisition Act for the purchase, which would typically involve a more standard valuation process rather than agreeing to what appears to be an inflated price.
Financial Discrepancies in the Tun Razak Exchange Deal

Tun Dr Mahathir Mohamad has echoed calls for the cancellation, pointing out the significant financial disparity in the transaction. He noted that 1MDB acquired 70 acres within the Tun Razak Exchange financial centre project for RM194 million, and subsequently intended to sell a 1.5-acre portion to LTH for a reported RM188 million. This indicates a substantial mark-up on the land's value as part of the larger development.
Confirmation of Deal Amidst Initial Denial

Initial reports indicated that LTH was in the process of acquiring two land parcels from 1MDB for close to RM800 million. However, LTH chairman Datuk Seri Abdul Azeez Abdul Rahim initially denied these claims. Subsequently, the board confirmed a deal for one parcel at RM188 million, a figure that has since drawn widespread scrutiny and led to bipartisan demands for LTH to provide a comprehensive explanation for the transaction.
Ongoing Investigations into 1MDB

The Tun Razak Exchange, envisioned as a 70-acre financial hub, is a key project within 1MDB's portfolio. It is important to note that 1MDB is currently the subject of investigations by both the Auditor General's Department and Parliament's Public Accounts Committee, adding another layer of concern to any associated transactions.

Reading history

Hide →

This history is cleared when the page is closed.

Should Tabung Haji cancel its land deal with 1MDB?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends