KUALA LUMPUR (March 22): Petaling Jaya Utara lawmaker Tony Pua today questioned whether Putrajaya would charge 1Malaysia Development Bhd (1MDB) president Arul Kanda Kandasamy for (hard) selling 1MDB as a success story to Malaysians.

At a press conference today, Pua pointed out that owing to 1MDB’s “practical insolvency” and inability to service its debts, both the Tun Razak Exchange (TRX) and Bandar Malaysia property development projects had been handed over to the Finance Ministry (MoF) a year ago.

“As a result, MoF has been forced to assume the RM2.4 billion Bandar Malaysia Sukuk debt. Arul Kanda, who loves to ask us to refer to the Public Accounts Committee (PAC) Report, himself chose to ignore the fact that the Auditor-General discovered that more than 90% of the RM2.4 billion Sukuk was never used for the development of Bandar Malaysia, or for that matter TRX.

“Deputy Minister of Communications and Multimedia Datuk Jailani Johari said any information related to 1MDB that has not been verified by the government is considered fake news. The big question now is will Arul Kanda be charged?” Pua asked as the government plans next week to table a Bill in Parliament that criminalises the dissemination of fake news.

Earlier this week, local media reported Arul Kanda’s observations that the strategic development agency’s success ought to be measured based on the development (completion) of its two mega projects, namely TRX and Bandar Malaysia.

But Pua pointed out the Bandar Malaysia land — formerly the Sungai Besi military airbase — remains an undeveloped plot.

“What success is Arul Kanda talking about? Bandar Malaysia is today, a testimony of 1MDB’s complete failure despite having been awarded the 495 acres of land at a ridiculously cheap price,” he said.

“In 2015, 60% of Bandar Malaysia was sold to a consortium led by Iskandar Waterfront Sdn Bhd for RM7.41 billion but the deal was terminated last year because the consortium failed to meet their financial obligations. Instead, the MoF has been travelling around the world to seek a new master developer.”

He observed repeated assurances by Treasury secretary-general Tan Sri Irwan Serigar of an impending contract award since July last year had yet to yield anything.

Although TRX is faring better, Pua said Arul Kanda had failed to highlight 1MDB’s acquisition of the land at RM64 psf and subsequent sale of a number of plots to government-related institutions for prices ranging from RM2,700 to RM4,500 psf.

“Regardless, the fact that these projects are being bailed out by MoF means that they are no longer 1MDB projects. Hence for Arul Kanda to attempt to claim credit for a project that is no longer 1MDB’s is really beyond imagination.”