Thursday 28 Mar 2024
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(June 30): State investment vehicle 1Malaysia Development Bhd (1MDB) will be appointing an independent real estate consultant to review the proposals received for its land parcels in Air Itam and Pulau Indah, said its president and group executive director Arul Kanda Kandasamy.

In a statement today, he said that this was part of the fund's strategic review to monetise the two land parcels through joint ventures or outright sale which was announced in February.

He added this was also confirmed in the rationalisation plan presented to the Cabinet on May 29.

"I am pleased to update that we have received significant expressions of interest in both land parcels.

"Accordingly, 1MDB intends to appoint an independent real estate consultant to assist in reviewing the various proposals," he said, adding that there would be an update on this within the next two weeks.

The Pulau Indah land deal was in the spotlight recently when DAP alleged that the US$150 million (RM562 million) loan from the Export-Import Bank (Exim Bank) to 1MDB for the purchase of the land was an abuse of power as the bank was not mandated to provide loans for domestic property purchases.

DAP national publicity chief Tony Pua said the government's letter of support to Exim Bank, which is owned by the Finance Ministry, was proof that the cabinet was willing to abuse its powers to conduct a "double bailout" of 1MDB and Tadmax Resources Bhd, which had sold the 125ha land to the state investment firm in February.

Tadmax, helmed by Umno-linked individuals, was reported to be bleeding financially.

1MDB also purchased the land in Air Itam, Penang, for RM1.1 billion.

The investment arm which has debts of RM42 billion, is owned by the finance ministry and has loans which are backed by letters of support from Putrajaya.

Prime Minister Datuk Seri Najib Razak is also finance minister and chairman of 1MDB's advisory board. – The Malaysian Insider

 

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