Tabung Haji to sell land from 1MDB on PM’s advice


May 9, 2015

Phnom Penh by The Mekong

Najib and the PhoneThe question is who made the call to Azeez for Tabung Haji to buy the 1MDB land in the first place.We are only told that the Prime Minister made to call to instruct  the Fund to sell off the land that was purchased from 1MDB.  Second, if it was a  such good investment why sell it now? How in the world can we take this Najib Administration seriously, or trust the Prime Minister to do things properly. Don’t play hide and seek with the depositors of Tabung Haji and the Malaysian people.–Din Merican.

Tabung Haji to sell land from 1MDB on PM’s advice

by Radzi Razak@www,malaysiakini.com

Tabung Haji will sell the controversial piece of land brought from 1MDB following advice from the Prime Minister, said its chairperson Abdul Azeez Abdul Rahim. Azeez said the board has agreed to sell it to respect the sentiments and sensitivities of the fund’s depositors. However Azeez, who is also Baling MP, denied Tabung Haji did anything wrong in purchasing the land.

“The Prime Minister called me this morning and advised us to sell the land. There are three offers already and we will settle it next week.” Najib is also Chairperson of 1MDB’s Advisory Board, and Finance Minister.

“We can get back 100 percent of our money and even profit from it,” added Azeez at a press conference today.Azeez THB

Azeez revealed that the board members until yesterday did not agree to sell the land as the deal had been done without any hanky-panky and is a normal investment for Tabung Haji.

Just two days ago when the controversy first surfaced, Tabung Haji said that the land would be used to develop a residential building. Tabung Haji bought 1.56 acres of the 70-acre land in Tun Razak Exchange owned by 1MDB for RM188.5 million. It worked out to about RM2,779 per square foot (psf).. 1MDB had a few years ago bought the entire 70 acres of the land from the government for a mere RM194.1 million, or about RM74.20 psf.

Not bailout’

Azeez said Tabung Haji was first approached to buy the land in April 2013, and this was agreed by the administration and investment panel first before it was brought to the board. He repeatedly insisted that it was not a bailout.

“This is not a bailout like some blogs claimed! The full board must agree first. If one person disagrees then we cannot make any decision whether to invest or to purchase,” Azeez said, mentioning that all the board members were joining him in today’s press conference.

Azeez, however, did not say which are the companies which had offered to buy the land. He said that the issue was political polemics which was trying to drag Tabung Haji along with it, and it is best for him and the fund to stay away from it.

UMNO-TBH Goons

“This also proves that it is not hard to sell the land.I wanted to say that after this please don’t accuse Tabung Haji of selling the land to the non-Muslims.We are reviewing the offers and will convene to make a decision next week. I have instructed our chief financial officers to announce the sale of the land in a press conference,” he said.

13 thoughts on “Tabung Haji to sell land from 1MDB on PM’s advice

  1. This is what happens when you pluck a used-car salesman to be the Chairman of one of the country’s biggest fund managers… what does he know about investments? about due diligence? about risk exposure? about returns and IRR? about NPV? about payback? or even conflict of interest or corporate governance?

    I asked this to a friend while having a drink a while ago after our squash game at the Nicol David Squash Centre here in Penang and he said… “then he is fully-qualified to be where he is… that is a perfect fit of man to job as far as Najib is concerned…”

    Now, that makes a lot of sense….

  2. Apparently YB Rafizi Ramli had warned parliament in March not to touch money from EPF or Tabung Haji…. and see who jumped up to protest him?

  3. Somewhere somehow it was reported that TH can make a profit of 5-10 millions just by passing it on. The Govn should have sold that land to TH in the 1st place since TH is that good in selling land and possibly enriched the TH Depositors.

    Anyway, the question now is, did it occur to anyone that the S&P Stamp Duty alone for the same price of 188 millions is 5.6 millions & there’s another 30% RPGT on the profit.

    Now assume that the tidy profit is expected, add on the RPGT & Stamping the new price would be in excess of 188+5.6+(5/0.7)= 200 millions, therefore equivalent to, (200/188*2779= 2950psft, still got buyer in this market?

    Why wouldn’t the potential buyer buys another plot directly from 1MDD and I wonder if that potential buyer’s BOD is such another bunch of fools.

    God knows.

    Ahill
    __________________
    Ahill,

    Najib will call another GLC to rescue Tabung Haji on this land deal. They never expected it to be a public outcry. They should know that Tabung Haji funds belong to people who are saving their hard earned halal money for the Haj. How arrogant these people can be to think we will not know what they do.–Din Merican

  4. Quote:- “This is not a bailout like some blogs claimed! The full board must agree first. If one person disagrees then we cannot make any decision whether to invest or to purchase”

    He must have thought he was smart to say that.

    This means that no Tabung Haji board member, including those who sit on 1MDB’s board or its advisory panel, abstained when a decision was made to purchase the land.

    There is therefore out-and-out conflict of interest. The purchase is void for an illegality under company law. Someone who is a contributing member of Tabung Haij, (for purposes of showing locus standi), should quickly file an application in court to declare the sale & purchase agreement between 1MBD and Tabung Haji null and void, and seek the return of all monies paid.

    If Tabung Haji now sells to a 3rd party, the RM188.5m remains with 1MBD, which is obviously what Najib wants and his purposes served. Should 1MBD be allowed to profit from an illegal sale transaction?

    If the argument is that, well, it is perfectly all right because Tabung Haji will make a handsome profit after holding the land for only a month, then the precedent is set. 1MBD can now sell to, say, EPF, etc, and then after a public outcry, Najib will again play the hero and “order” EPF to sell it to a 3rd party for a handsome profit. And again money goes from EPF to 1MBD. It will never end.

    PKR, PAS, now is the time to do real public service. Put your money where your mouth is. These political parties are bound to have Muslim contributing members to Tabung Haji. Get a court declaration now. And if the court refuses, then it proves once and for all which direction our judiciary has gone. But at least the issues get a court airing.

  5. I do not understand, why PM Najib wants to bury himself. Does he have a battle plan? I don’t know. Wait n see.

  6. The land was sold by the state to 1MDC at preferential rates, I presume, amongst others to build affordable homes for our young people. But now lawyers are making money from the 0.5-1% transaction cost.

  7. Datuk

    We have a bunch of useless individuals heading financial institutions who serve the political masters rather than religious belief and conscience. May the wrath of Allah be upon them and all those “bangangs” who are mismanaging any institution of the country. Now all of a sudden the Ministers who were previously silent, are opening their big mouths! Where were they when these were being openly reported and raised.
    _________________
    These professionals in TBH are playing politics. They forget their fiduciary duty. The TBH rogues gallery on display on my blog. They should be charged but that will not happen.–Din Merican

  8. The clever Idiot really knows what he is talking about when he says its not a bail-out for 1MDB for TH buying a 1.56 acres ( out of 70 acres ) of the TRX parcel for RM188Million of contributors’ monies – of course, you cannot ‘bail out ‘ !MDB’ s debt of RM42 Billion ? BUT, for a small piece of 1.56 acres @ whoping 188 Million , does HELP 1MDB’s ( PM’s headache ) ‘ black-hole’ collectively in the same way GSTs, Super GSTs and other Indirect taxes ……., to get out of the MESS created by the misadventure started by one and the same person sitting as PM, holding the Finance portfolio, AND, on the Board of 1MDB = a clear case of Conflict of Interest , such that , the criminal fraud by TH chief is imputed to be the criminal culpability of the one and same person….?

    Incomprehensible and totally unacceptable to pay RM188Million for a mere 1.56 acres ‘triangle ‘ when the total 70 acres itself was ONLY approx. RM 190 over million > its a criminal fraud…..

  9. I am a non Muslim…I have no right to interfere in religious funds…that is Tabung Haji Fund but it frightened me to see such things happened. …using the fund’s money to purchase land in secret causing a national protest. …not a bailout. …said the Chairman. ……do we believe him. The Chairman statement is probably “joke of the year”…

  10. The proverbial dung has hit the kipas, and every “hero” involved are very busy trying to pass the blame, and many politician around is absorbed with posturing trying to gain some brownie points which may help their ascension up the slippery ladder.

    But quite aside from the possible RM5.6m stamp duty, the 30% Real Properties Gains tax (which the Najib regime may find cause to waive?)… let us not lose sight of the fact that the floundering 1MDB has managed to secure the RM188m it desparately needs for ther next interest payment in the week which starts in a matter of hours. Whatever happens to the Tabung Haji money, 1MDB is kept alive for now.

    Funds meant for Muslims to tunaikan ibadat haji vs keeping the 1MDB’s nose above the swirling waters of doom…

  11. Any decision made by TH should be a commercial one independent of outside influence. The one and only concern is the interests of its members. Now the chairman is talking about selling it’s latest acquisition on the advice of Jibby. This is Part II of the story. We are very interested to know Part I of the story. Who “advise” TH to acquire the said Land from 1MDB? Were there any agent involved and commission paid? Was the acquisition done following a mere phone call?

  12. Quote:- “Who “advise” TH to acquire the said Land from 1MDB?”

    1MDB is wholly owned by the Ministry of Finance. Could 1MDB sell anything worth RM188m without the Finance Minister knowing and Ok it? 🙂

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