PNB also 'loaned' funds to 1MDB - Rafizi

He said PNB had bought RM579.2 million worth of sukuk bonds from the government-owned strategic development company. The bonds were issued in February 2014.

He said a report by The Star last year revealed 1MDB had issued RM1.5 billion worth of Islamic bonds to both PNB and TH.

And with TH having admitted yesterday that it bought RM920.8 million worth of sukuk from 1MDB, this could only mean that the remaining RM579.2 million had been bought by PNB, said Rafizi, who is also PKR secretary-general.

He said 1MDB had borrowed a total of RM3.5 billion with the other RM2 billion being loaned by AmBank.

"PNB's involvement in providing loans to 1MDB confirms my concerns that (Prime Minister) Datuk Seri Najib Razak will use public funds to save 1MDB," said Rafizi.

The Pandan MP said the bonds are not rated, thus deeming the investment by PNB and TH as extremely risky and dangerous.

"The RM1.5 billion loan is guaranteed by the land to develop Bandar Malaysia (that was given by Putrajaya to 1MDB) and future cash flow stemming from rental by tenants upon its completion. That is how the RM1.5 billion loan is to be repaid.

"But the development of Bandar Malaysia has not been promising. The collateral given to the two agencies by 1MDB is 'virtually worthless'," said Rafizi.