1MDB rubbishes Rafizi's claim on Bandar Malaysia's Sukuk

1Malaysia Development Bhd (1MDB) yesterday rubbished claims pertaining to Bandar Malaysia's Sukuk programme as "irresponsible" since the proceeds from the Islamic bond was properly utilised.

1MDB was referring to a statement by Rafizi Ramli, Member of Parliament for Pandan, who claimed 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 had in fact been utilised in accordance with the terms of the Sukuk Programme Agreement," it said in a statement yesterday.

The proceeds was used to partly finance the cost of the Pangkalan Udara Kuala Lumpur (PUKL) relocation project, pre-funding fees and expenses for the Sukuk Programme, funding requisite financing reserve accounts and as working capital by 1MDB Real Estate Sdn Bhd, which is now known as TRX City Sdn Bhd.

Rafizi Ramli had conveniently ignored a detailed statement issued by 1MDB on Jan 6, which in no uncertain terms, made it clear that this would not be the case when he raised concerns that a foreign company may be involved in the PUKL relocation project, the statement said.

Reiterating its stance, 1MDB said Perbadanan Perwira Hartanah Malaysia (PPHM), a 100 per cent subsidiary of Lembaga Tabung Angkatan Tentera, is and would continue to be, the turnkey contractor for the PUKL Relocation project.

PPHM has, in turn, appointed over 50 qualified Bumiputera contractors as sub-contractors to deliver various aspects of the construction and they would remain the designated contractors and perform their roles exclusively.

These contractors have been approved by the relevant authorities and construction would be 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 per cent interest in the Bandar Malaysia project," 1MDB added.