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'Tabung Haji, KWAP must recover RM1.5b from 1MDB'
Published:  Jan 18, 2016 5:40 AM
Updated: 6:58 AM

PKR vice-president Rafizi Ramli has urged Lembaga Tabung Haji and Retirement Fund Incorporated (KWAP) to recover RM1.5 billion from 1MDB after the state-owned company purportedly violated the terms of its sukuk (Islamic financial) agreement.

"I urged Tabung Haji and KWAP to exercise their rights according to the agreements to demand that 1MDB immediately repay the outstanding (sum) from the sukuk issuance to Tabung Haji and KWAP," Rafizi said in a press statement today.

Both Tabung Haji and KWAP are subscribers of 1MDB's Bandar Malaysia sukuk, which was meant to finance the relocation of the Royal Malaysian Air Force (RMAF) Sungai Besi base as well as to upgrade several other bases.

However, Rafizi claimed, the sukuk was not entirely used for the stated purpose, which is a violation of the terms of the Islamic bond.

He said under the agreement, Tabung Haji and KWAP are entitled to recover their funds if the terms of the sukuk were breached.

"The prime minister's answer in Parliament previously confirmed that Tabung Haji had subscribed to RM920.8 million of 1MDB's issued sukuk.

"The remainder is believed to have been subscribed by KWAP at RM579.2 million," he added.

Rafizi urged the two entities to recover the RM1.5 billion in the public interest.

"Failure to do so will only result in the rakyat's anger towards Tabung Haji and KWAP and further erode Prime Minister Najib Abdul Razak's credibility," he said.

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