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1MDB's recent sale of its 60 percent stake in the Bandar Malaysia development project is in violation of the terms for the sukuk Islamic bonds it issued to finance the relocation of several air force bases, PKR secretary-general Rafizi Ramli claims. This, he said in a statement today, is based on pages 30 and 32 of the agreement. Rafizi pointed out that under Item 2(w)(i)(12) of the RM2.4 billion sukuk issuance agreement, Bandar Malaysia Sdn Bhd (BMSB) – "the issuer" – must remain as the wholly-owned subsidiary of 1MDB. The sale, Rafizi argued, is now a major snag to one of the main pillars of the 1MDB debt rationalisation initiative. He vowed to continue with his crusade, for as long as there is no clear answer or remedy from 1MDB.

Unsatisfied with 1Malaysia Development Berhad's (1MDB) explanation, PKR lawmaker Rafizi Ramli today challenged the company to disclose details on how it used the sukuk funds. He said 1MDB last night failed to address his main query, which was what had happened to the RM1.6 billion from the RM2.4 billion sukuk issued through Bandar Malaysia Sdn Bhd in 2014. 1MDB yesterday denied Rafizi's remarks and insisted the RM2.4 billion sukuk had been utilised in accordance with its agreement. 1MDB reportedly said the sukuk had been used to partly finance the relocation of the air force base at Sungai Besi, pre-fund the fees and expenses of the sukuk programme, fund the requisite financing reserve accounts, and fund the working capital requirements of 1MDB Real Estate Sdn Bhd (now known as TRX City Sdn Bhd).

About RM1.6 million of the RM2.4 billion sukuk 1Malaysia Development Bhd (1MDB)? issued through Bandar Malaysia Sdn Bhd in 2014 remains unaccounted for, says PKR's Rafizi Ramli. The RM2.4 billion sukuk was issued to pay for the relocation of the army base on Bandar Malaysia land, said Rafizi. Yet the state investment arm announced that the consortium purchasing 60% equity in Bandar Malaysia Sdn Bhd may assume 60% of the remaining RM1.9 billion cost of relocation of the Pangkalan Udara Kuala Lumpur (PUKL) relocation?. The total relocation cost of PUKL had actually been RM2.7 billion, so only RM800 million of the sukuk had been used so far to pay for PUKL's relocation costs, said Rafizi.