Thursday 28 Mar 2024
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(May 15): There appears to be another coincidence between debt-ridden 1Malaysia Development Bhd (1MDB) and the management of Islamic insurer Takaful Malaysia, which recently purchased a RM85 million Islamic bond from the state investment vehicle, the DAP said today, and 1MDB director Tan Sri Ismee Ismail seems to be the link.

Bukit Bendera MP Zairil Khir Johari said there seemed to be too many "coincidences" involving Ismee, who is chairman of Takaful as well as Lembaga Tabung Haji chief executive officer (CEO).

Ismee also sits on the board of 1MDB.

"There appears to be too many coincidences. It certainly seems that wherever Ismee goes, 1MDB’s interests would prevail," Zairil said in a statement today.

"Ismee should immediately come clean on his role in Takaful Malaysia’s RM85 million 1MDB sukuk purchase, as well as the RM188 million Tabung Haji-1MDB land deal. Whose interests influences his decision-making and where do his loyalties lie?"

This comes days after Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim denied there was any conflict of interest in the fund's purchase of a plot of land from 1MDB following criticisms of the deal narrowed on personalities holding top positions in both funds.

Azeez said that Ismee had "abstained" from the entire process of Tabung Haji's RM188.5 million purchase of a plot of land at Tun Razak Exchange (TRX).

Yesterday, Takaful revealed that it bought a RM85 million Islamic bond from the controversial 1MDB in 2009, but the Islamic insurance company assured that the investment was low-risk.

Takaful Malaysia group managing director Datuk Seri Mohamed Hassan Md Kamil said the bond was purchased from Terengganu Investment Authority (TIA), which was 1MDB's previous incarnation.

Zairil, who is DAP assistant national publicity secretary, said that despite Hassan's assurances that the bond was of "low risk", there were several inconsistencies and questions that have come up from the deal that needed to be addressed.

"Firstly, it is strange to claim that the bond was purchased from TIA when, at the time of the bond’s issuance in May 2009, 1MDB had already been incorporated following the name change from TIA to 1MDB in January 2009," he said.

The other, he noted, is Ismee's involvement in both 1MDB and Takaful.

Ismee was appointed to the 1MDB board of directors in March 2009 and two months later, 1MDB issued Islamic medium-term notes or sukuk bonds worth RM5 billion, of which RM85 million were snapped up by Takaful Malaysia, Zairil said.

The opposition lawmaker also urged Takaful to reveal the full details of the multi-million ringgit bond purchase, including the price paid for every ringgit of bond purchased and whether the purchase was made directly or through the secondary market.

Criticism has been mounting over the Finance Ministry wholly owned investment vehicle, established in 2009, which has chalked up debts of up to RM42 billion.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah previously disclosed that Putrajaya had  approved an RM950 million standby credit facility for 1MDB, of which RM600 million has been used. – The Malaysian Insider

 

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