PKR Youth vice-chief Fahmi Fadzil wants the Armed Forces Fund Board  (LTAT) to ensure that both Affin Holdings Bhd and Affin Bank Bhd review their land purchase agreement with the troubled 1MDB.

This is to safeguard the interests of LTAT members as well as the interests of the armed forces, said Fahmi at a press conference at the PKR headquarters in Petaling Jaya today.

Fahmi ( photo ) also pointed out there was a conflict of interest as Lodin Wok Kamaruddin is both chairperson of 1MDB's board of directors as well as the deputy chairperson of Affin Holdings's board of directors.

"It's important to know whether Lodin had voted for the land buy or otherwise. He must explain the matter so that a negative perception does not arise from the issue," he said.

Affin Bank, which is controlled by LTAT, had acquired a 0.51-hectare piece of land in the Tun Razak Exchange (TRX) for RM255 million. The TRX is a property development project wholly-owned by 1MDB.

No conflict of interest

Meanwhile, Fahmi also questioned the need for Affin Bank to spend millions of ringgit when the bank is already headquartered at a building at Jalan Raja Chulan.

"Affin Holdings and Affin Bank's financial performance has not given the people confidence for them to spend millions of ringgit for a new office," he added.

This is in light of Affin Holdings’s net profit sliding 78.9 percent to RM30.09 million in the first quarter ended March 31, from RM142.73mil in the corresponding period last year on higher allowance for loan impairment and overhead expenses.

Affin Bank group chief executive officer Kamarul Ariffin Mohd Jamil on Monday had said that the development would have a gross floor area of 823,439 square feet and it would house the company’s new 35-storey headquarters after being "homeless" for 40 years.

The land has been independently valued at RM262 million.

Kamarul said the new building would cost the bank an additional RM300 million, with the construction expected to be completed by the end of 2018.

On whether there would be any conflict of interest involving Lodin, he said: “He (Lodin) is not participating in the decision-making process. We are buying it for ourselves.”

Kamarul had also said the company did not need any approval from shareholders before making the acquisition.

 

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