Malaysiakini News

TRX City lodges police report over RM3b funds 'siphoned' by 1MDB

Published:  |  Modified:

TRX City Sdn Bhd (TRXC) has lodged a police report last Friday over the purported transfers of its funds to 1MDB to pay off the state fund's debts.

"These transfers were made based on instructions from 1MDB and were diverted from their intended use, which were for the Tun Razak Exchange and Bandar Malaysia projects.

"Approximately RM3 billion was transferred from TRXC to 1MDB between mid-2012 to early 2017, when it was a subsidiary of 1MDB, on the understanding that it would be subsequently repaid to TRXC," the company said in a press release today.

It said the police report was lodged following Finance Minister Lim Guan Eng's announcement about the misappropriated funds last Thursday and pledged that the company will cooperate fully with the police.

Last Thursday, Lim had said that the federal government had previously transferred RM3.688 billion to TRXC since 2012.

However, he said, of that RM3.688 billion transferred to TRXC, RM3.067 billion had been misappropriated by 1MDB, mainly for 1MDB loan repayments.

"As a result of the misappropriation of funds, TRXC does not have enough money to fulfil its obligations as the master developer for TRX," he had said.

He had also announced that the cabinet has decided to inject a further RM2.8 billion for the Tun Razak Exchange (TRX) project because abandoning it will result in having to fork out RM3.51 billion in compensation.

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