Following reports that Lembaga Tabung Haji (LTH) had bought one plot of land in the Tun Razak Exchange (TRX) development from 1MDB at RM188.5 million or RM2,773 psf, Datuk Seri Najib must now explain why the land was sold to 1MDB at only RM64 psf in the year 2010.
The 70-acre TRX was sold to 1MDB at RM194 million in 2010, but was revalued twice to RM1.1 billion and RM1.59 billion all within 2 years. In fact, based on its financial report for the year ending March 2013, the land was further revalued by RM2.7 billion or RM885.50 psf.
Now, LTH has acquired 1.56 acre plot at the price of RM188.5 million or RM2,773 psf and Tabung Haji chief executive officer (CEO) Datuk Johan Abdullah has even said that the RM188.5 million paid for the parcel of land in TRX was at a “discounted” price to current market value. His allegation could be true because based on the leaked documents, the LTH investment panel had, on 30 March 2015, recommended to the Board of Directors to propose to the Minister to approve the purchase from 1MDB Real Estate Sdn Bhd at RM194 million or RM2,860 psf. In other words, LTH has acquired the land at a slightly lower price of RM188.5 million or RM2,773 psf, which corresponds to a discount of less than three per cent compared to the recommended purchase price.
As correctly pointed by my colleague Zairil Johari, Bukit Bendera MP, this sweetheart deal has effectively allowed 1MDB to rake in a huge profit of RM184 million by acting as nothing more than a land broker.
More importantly, the profit to 1MDB is actually a loss of all Malaysians. Should our government did not sell the land to 1MDB at dirt-cheap price in 2010, our government would easily obtain RM8,455 million from selling the 70-arce TRX land, instead of getting merely RM194 million! As such, it is a lost of RM8,261 million to all Malaysians!
Datuk Seri Najib owes us an explanation.