Rafizi: PNB threw 1MDB RM579mil lifeline

Permodalan Nasional Bhd (PNB), a GLC set up to promote equity ownership among the bumiputra, was likely to have loaned RM579.2 million to debt-ridden 1Malaysia Development Bhd (1MDB).

PNB is the investment arm of Yayasan Pelaburan Bumiputra (YPB), a unit set up in 1978 to implement New Economic Policy objectives. Prime Minister Najib Abdul Razak is the chairperson of YPB board of trustees.

According to PKR secretary-general Rafizi Ramli, a report by The Star in March had stated that PNB and Tabung Haji had bought RM1.5 billion in sukuk bonds from 1MDB with Bandar Malaysia land as collateral.

But now that Tabung Haji had admitted that it has bought RM920.8 million in sukuk bonds from 1MDB, it could only mean that the balance was bought by PNB.

At a press conference today, Rafizi said three GLCs – Tabung Haji, PNB and Retirement Fund Inc (KWAP) – are now known to be pumping money into 1MDB.

“Only the Employee Provident Fund has been bold and confirmed that no EPF money has been invested in 1MDB.

“The one who hasn’t said anything is the Armed Forces Fund Board (LTAT),” Rafizi said, adding that he was confident that LTAT was already involved.

More 1MDB bonds soon?

On the sukuks issued to Tabung Haji and PNB, Rafizi said the money raised were meant to facilitate the relocation of military assets from what used to be the Sungai Besi army camp, as phase 1 of the Bandar Malaysia’s development.

However, he claimed, there has been no visible progress on this effort.

Rafizi also claimed that 1MDB had promised to pay back its loans using money raised from rent collected once Bandar Malaysia is developed.

“(But) even if you have a complete development, it is not confirmed that 1MDB will be able to get the right tenants at the right tenancy rate to make back the money,” he said.

Besides the RM1.5 billion bonds issued to Tabung Haji and PNB, Rafizi claimed the state investment arm plans to raise a further RM2.5 billion to develop Bandar Malaysia.

“My checks show that 1MDB plans to issue up to RM2.5 billion in sukuk, to finance the development of Bandar Malaysia, on top of RM2 billion in debts it had loaned from Ambank for Bandar Malaysia,” he said.

May 12, 2015 – Malaysiakini
Rafizi: PNB threw 1MDB RM579mil lifeline


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