Press Release

Date: 
12-01-2016
Bandar Malaysia Sukuk and Construction Contract
Bandar Malaysia Sukuk and Construction Contract

1MDB refers to an irresponsible statement made today by YB Rafizi Ramli, who seems intent on competing with YB Tony Pua to see who can mislead the Malaysian public more with sensationalist half-truths and unproven claims relating to 1MDB business affairs.

In particular, YB Rafizi Ramli appears to suggest that proceeds from the Bandar Malaysia Sdn Bhd Sukuk (“BMSB Sukuk”) may not have been properly utilised. 1MDB strongly denies this allegation and confirms that the proceeds raised by BMSB have in fact been utilised in accordance with the terms of Sukuk Programme Agreement, which includes:

  • part financing the cost of the Pangkalan Udara Kuala Lumpur (PUKL) relocation project;
  • pre-funding the fees and expenses of the Sukuk Programme;
  • funding the requisite financing reserve accounts; and
  • the working capital requirements of 1MDB Real Estate Sdn Bhd (now known as TRX City Sdn Bhd).

Secondly, YB Rafizi Ramli is concerned that a foreign company may be involved in the PUKL relocation project.  He has conveniently ignored the detailed statement issued by 1MDB on 6 January 2016, which in no uncertain terms, makes clear that this will not be the case. Perbadanan Perwira Hartanah Malaysia (PPHM, a 100% subsidiary of Lembaga Tabung Angkatan Tentera) is and continues to be, the Turn Key contractor to deliver the construction aspects of the PUKL Relocation. PPHM has, in turn, appointed over 50 qualified Bumiputra contractors as sub-contractors to deliver various aspects of the construction.

PPHM as the Turn Key contractor and the over 50 Bumiputra subcontractors will continue to remain as the designated contractors and will continue to perform their roles exclusively. These contractors have been approved by the relevant authorities and construction is supervised by relevant officials from the Ministry of Defence and Ministry of Home Affairs. As the construction will continue to be carried out by the current approved contractors, there is, therefore, no question of any impact on national security through the sale by 1MDB of its 60% interest in the Bandar Malaysia project.

Having executed legally binding agreements for the three main pillars of its rationalisation plan per the six month deadline committed by the Government of Malaysia, 1MDB is now fully focused on implementing the terms of the agreements and achieving completion. 1MDB commits to issue periodic updates on progress.