KUALA LUMPUR (May 28): Prime Minister Datuk Seri Najib Tun Razak told Parliament today the start-up capital for Terengganu Investment Authority (TIA) in 2009 was RM1 million and not RM500 million as claimed by opposition lawmakers.

TIA was established in 2008 as Terengganu's state investment arm. TIA was renamed as 1Malaysia Development Bhd (1MDB) in 2009.

"Based on the information provided by 1MDB management to the Ministry of Finance, the statement made by Sepang MP (Mohamed Hanipa Maidin) that TIA was given a start up capital of a total of RM500 million is untrue.

"The federal government took over TIA from the Terengganu state government on September 25, 2009, with RM1,000,002.00. And TIA's name was then subsequently changed to 1MDB," Najib said in his written reply to Mohamed Hanipa.

Najib, who is finance minister, is also chairman of 1MDB's board of advisors.

Mohamed Hanipa had earlier asked Najib to specify whether TIA was given initiation funds amounting to RM500 million. Mohamed Hanipa also asked Najib to specify the amount of TIA's start-up capital.

Mohamed Hanipa's queries came a time when 1MDB's financials were being investigated. 1MDB invests in real estate, and electricity-generation projects.

According to 1MDB's website, the company's real estate projects here comprise the Tun Razak Exchange and Bandar Malaysia.

1MDB's electricity-generation portfolio comprises Powertek Energy Sdn Bhd besides 1MDB's 75% stake each in Kuala Langat Power Plant and Jimah Energy.