RM2.8b govt funding for TRX to be given in stages (Updated)

KUALA LUMPUR: The RM2.8 billion that will be injected by the federal government into the development of the Tun Razak Exchange (TRX) will not be given in a lump sum to avoid misappropriation.
TRX City Sdn Bhd chief executive officer Datuk Azmar Talib (pix) said the funds would instead be given in separate payments in line with the progress of the project development, to ensure all the funds were utilised transparently.
"They (government) won't give us the money in a single full payment. The RM2.8 billion, which is meant for the entire project that is to be completed in 2024, will be given as and when we progress.
"As far as the cash flow is concerned, we will not be getting it in total," he told a press conference during a TRX media briefing and site tour, here, today.
Finance Minister Lim Guan Eng had, on June 21, said the government would fund RM2.8 billion for the completion of TRX, and that the decision was to help allay concerns of investors on the fate of the project developed by TRX City, a company owned by the Finance Ministry.
Azmar was responding to a question on how TRX City would ensure that there would not be a repeat of the RM3 billion transfer to 1Malaysia Development Berhad (1MDB) between 2012 and 2017 if another round of huge funding were given by the government.
It was previously reported that TRX City had transferred the RM3 billion to 1MDB, and was misappropriated by the state investment arm to mainly repay its outstanding loans.
The company, formerly a subsidiary of 1MDB, had since lodged a police report on June 25 following orders from Lim. It also claimed that the transfers were made based on instructions from 1MDB and were "diverted from their intended use".
"The case is now being investigated by the police and I believe they will do what is necessary to find out the truth. As far as we are concerned, we have and we will give our full support to the police," Azmar said.
When asked to elaborate further on the RM3 billion transfer to 1MDB, he said: "I wouldn't want to comment too much because firstly a report has been lodged. And whatever happened beyond TRX City I wouldn't know."
TRX is one of two key real estate projects under the 1MDB umbrella, the other being the 486-acre Bandar Malaysia development project.