PKR vows to push for a court injunction if the government attempts to get state agencies to subscribe to 1Malaysia Development Berhad (1MDB)'s initial public offering (IPO) for its energy arm.

 

Its secretary-general Rafizi Ramli said the injunction will be sought to stop the Employees Provident Fund (EPF) or any other public bodies from subscribing to the IPO, so taxpayers’ money will not be used to ease 1MDB’s cash flow problems.

 

The Finance Ministry last week said that the IPO planned later this year can solve 1MDB's cash flow and help the state-owned investment firm pay off its loans which now amount to RM42 billion.

 

"We will do our best to file an injunction against EPF, or any other bodies, if there is an IPO, so that public funds will not be used to subscribe to the 1MDB IPO," Rafizi said.

He said this at a packed forum on 1MDB in Petaling Jaya today, attended by more than 700 people.

Many who attended were forced to stand or sit on cross-legged on the floor because there were not enough seats.

GLC to move into 1MDB projects?

Rafizi also claimed he has information that government-linked companies will be pushed to relocate to Tun Razak Exchange (TRX) and Bandar Malaysia - two 1MDB projects which are under construction.

TRX, earlier dubbed Kuala Lumpur Internatinal Financial District, is located walking distance to the Petronas Twin Towers while Bandar Malaysia will be at the former Sungai Besi military airport.

1MDB acquired both the choice parcels of land from special deals with the government.

Qatar Investment Authority has pledged US$5 billion (RM 18.57 billion) for Bandar Malaysia, while TRX was reportedly planned to be the first project for 1MDB's 50-50 venture with Abu Dhabi's Aabar Investment.

The Edge last year reported that both QIA and Aabar were mulling pulling out of the ventures.

Previously, 1MDB, via its former subsidiary SRC International, obtained a RM4 billion loan from the pensioners fund (KWAP).

The money was used to invest in a coal mining company in Mongolia, but SRC International was later transferred to become a fully-owned subsidiary of the Ministry of Finance Incorporated.

Details of what happened to the money remain scarce.

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