The government is gambling away national security and finances by appointing 1Malaysia Development Berhad (1MDB) to handle billions of ringgit worth of development projects, said opposition leader Anwar Ibrahim.

He said there is no evidence to prove that 1MDB, which is barely a year old, is capable of handling massive projects such as the over RM26 billion Kuala Lumpur International Financial District (KLIFD) project.

NONE “I’m not jealous of Jho Low ( right ) spending time with Paris Hilton, but the fact is that upon checking with the companies commission, 1MDB has no business address and no appointed auditor,” he said when debating the Budget 2011 in parliament today.

“It is also questionable that its chief executive officer only reported on Oct 12 that they made RM425 million profit, just days before the budget was tabled.

“How can the government approve such a company to take on a project of such national importance? What is the Prime Minister’s interest in this?,” he charged.

Anwar, a former deputy premier and finance minister, stressed that the government’s special treatment of 1MDB contradicts Prime Minister Najib Abdul Razak’s pledge of transparency in the overall process of bidding for government projects.

He added that transparency in issuing government projects is all the more important in 1MDB’s case, considering that the government has given its guarantee on RM5 billion in bonds issued to support the company’s various projects, which include the multi-billion ringgit joint re-development of the Sungai Besi air base with the Qatar Investment Authority and the RM21.7 billion joint-venture with State Grid Corp of China (SGCC) in the Sarawak Corridor of Renewable Energy (Score).

‘Toll concessions are modern-day robbery’

 

Anwar also questioned the proposed joint takeover of Plus Highways Berhad by the Employees’ Providence Fund (EPF) and UEM Group Berhad, a subsidiary of government investment arm Khazanah Nasional Berhad, asking what the rationale is behind the EPF taking a minority stake in the largest toll operator in South-East Asia.

azlan EPF, which was reported to hold a fund size of RM402 billion as at March 31 this year, currently holds a 12.3 percent stake in Plus and is expected to expand its holdings to 49 percent, with the balance going to UEM.

Anwar repeated the DAP’s proposal to nationalise the toll concessions, which costs the government billions in compensation every year due to a freeze in toll rates.

“Toll is collected every minute. It is a modern form of robbery which is more insidious that the methods of the past,” he said.

Touching on the controversial construction of the Istana Negara (National Palace), Anwar said the point of contention is the main contractor appointed and the escalated cost of the project, and not the royal institution.

“No one is questioning the development of the palace. I must state this clearly for Utusan Malaysia because their understanding of Malay is shallow, we are questioning the cost of the project which has gone up twice and the main contractor, Maya Maju (M) Sdn Bhd, which is owned by the former treasurer of Merbok Umno,” he said.

Anwar urged the Public Accounts Committee (PAC) to open investigations into the Istana Negara project, which will cost RM811 million, up from the RM650 million price tag offered by the government through direct negotiations with the company.