Lendlease's Malaysian partner TRX suffered a cash deficiency of AUD 1B due to theft: TRX could never have funded its Lendlease JV;ASX was never informed



by Ganesh Sahathevan




Malaysian business daily The Edge reported on 28 May 2018:

Australian developer and infrastructure firm Lendlease seeks to continue its joint venture with TRX City Sdn Bhd to develop The Exchange TRX at the 70-acre Tun Razak Exchange (TRX) international financial district.
“We look forward to continuing our collaborative working relationship with master developer’s TRX City in achieving the common goal of a successful project delivery that will strengthen Kuala Lumpur’s position as the defining gateway city in Southeast Asia and broader Asia,” it said in a statement to EdgeProp.my.
The developer has a 60:40 joint venture with TRX City to develop the TRX Lifestyle Quarter, which the Exchange TRX retail component is a part of.
In September last year, the company said 26% of its retail space had been leased out and it expects to open its doors by 2020.
According to Lendlease’s website, the TRX Lifestyle Quarter is its biggest integrated development in Asia.

However, it has just been revealed in Malaysia that TRX City suffered a AUD 1 Billion cash deficiency caused by theft.It could never have financed its 40% of the JV, and as proof, the Malaysian Government has now to fund the TRX project.
 Lendlease could not have not known,and investors have a right to know.
END

Reference
Malaysia's TRX City to make police report after Finance Minister says funds stolen by 1MDB
 THE STAR/ASIA NEWS NETWORK
PUBLISHEDJUN 21, 2018, 11:12 PM SGT



PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - TRX City Sdn Bhd, a company parked under Malaysia's Ministry of Finance, said on Thursday (June 21) that it will lodge a police report on allegations that funds meant for the development of a project called Tun Razak Exchange (TRX) were instead used to repay the loans of state fund 1MDB.

TRX City issued the statement after Finance Minister Lim Guan Eng said earlier that the TRX project would be completed, although more than RM3.1 billion (S$1.05 billion) of its funds were misappropriated by 1MDB.

TRX City chief executive officer Azmar Talib also thanked the government for its confidence to continue with the TRX to become Kuala Lumpur's new financial district.

"Our investors will view this commitment positively as it confirms the government's pro-business plans," he said.

Mr Lim had said that TRX City's former parent company 1MDB has used funds meant for the project was stripped and used to pay part of 1MDB's debts.

"This project is a classic example of how 1MDB has used its (funds) to pay off debts not related to this project," Mr Lim had said.


TRX City was a subsidiary under 1MDB before it was transferred to the Finance Ministry in March last year.


Mr Lim said his ministry will now inject up to RM2.8 billion into TRX City to ensure the completion of the project.

Former prime minister and finance minister Najib Razak, who started 1MDB in 2009, said in a Facebook posting on Thursday that "no monies from TRX City were misappropriated by 1MDB".

Datuk Seri Najib claimed that Mr Lim "has been spreading half truths and outright lies" about the project.

"Since the TRX City was owned 100 per cent by 1MDB which was in-turn, owned 100 per cent by MOF (Ministry of Finance), surely 1MDB cannot be stealing RM3 billion from itself to service its own loan?" Mr Najib wrote.

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