KUALA LUMPUR (June 21): TRX City Sdn Bhd, a company owned by the Ministry of Finance (MoF), said in a statement this evening that it will be lodging a police report over funds meant for the Tun Razak Exchange development that was taken by 1Malaysia Development Bhd.

The MoF disclosed earlier today that some RM3.07 billion meant for TRX development had been misappropriated by 1MDB from about RM3.69 billion worth of government funds that were transferred to TRX City for the project.

TRX City's announcement came after Finance Minister Lim Guan Eng said he had instructed TRX City chief executive officer Datuk Azmar Talib and the chief operating officer Tan Hwa Min to lodge a report with both the police and the special 1MDB probe panel.

TRX City was formerly known as 1MDB Real Estate Sdn Bhd and a subsidiary of 1MDB, before the unit was transferred to the MoF on March 31 last year on the advice of the Parliamentary Public Accounts Committee after TRX City was unable to secure land sales or bank financing due to its association with 1MDB.

Lim said due to the misappropriation, TRX City did not have enough money to fulfil its obligation as the master developer for TRX, hence the government had agreed to inject an additional RM2.8 billion into TRX City to complete the TRX project.

In response, TRX City said it welcomes the support from MoF to complete the project.

“We thank the government of Malaysia for having confidence in TRX, Kuala Lumpur’s new international financial district. Our investors will view this commitment positively as it confirms the government’s pro-business stance,” Azmar said in the statement.

“We have made significant progress with the project and attracted world-class investors. With this much needed support, and the ongoing commitment from our partners, we look forward to delivering the project within schedule and on budget, for the benefit of Malaysia and all Malaysians,” he added.

TRX City said the its future development, touted to be the next central business district, will strengthen Kuala Lumpur’s position as a leading centre for international finance and business.

Besides the 70-acre TRX project, TRX City owns the 483-acre Bandar Malaysia development.