KHAIRY CLAIMS NAJIB NEVER TOLD CABINET CHINA DEALS WERE LINKED TO 1MDB BAIL-OUT, DEMANDS IMMEDIATE PROBE – WHILE BLURRY AZMIN WARNS AGAINST SPECULATION, SAYS HE WAS ‘NOT PRIVY’ TO DOCUMENTS CITED IN WSJ EXPOSE

UMNO politician Khairy Jamaluddin has called on Putrajaya to investigate claims that China offered to bail out 1Malaysia Development Bhd in exchange for construction deals under the economic superpower’s Belt and Road Initiative.

“Explosive allegations that need to be investigated thoroughly,” Khairy said on Twitter today in response to a report by the Wall Street Journal. 

The paper had cited the minutes of a series of previously undisclosed government meetings in 2016.

One of the construction projects to be awarded to Chinese firms as part of the bailout deal was two gas pipelines, for which the Najib administration signed a US$2.3 billion (RM9.3 billion). loan from the Export-Import Bank of China.

Another project was the RM95 billion East Coast Railway Link (ECRL), undertaken by the China Communications Construction Co Ltd (CCCC Ltd).

“As a former cabinet member I can categorically state that the cabinet was never informed that the China deals were linked to bailing out 1MDB.

“If there is evidence of that happening, it was without cabinet approval,” Khairy said.

A Twitter user who commented that he was not being truthful was told by the Rembau MP to “Ask for Cabinet minutes to be declassified. Then can conclude who is lying.”

The ECRL and gas pipelines are among projects under review following Pakatan Harapan’s win at the 14th general election last May.

Some of the infrastructure projects were financed at above their market value to enable Najib and BN to use the excess cash for other needs, said WSJ.

The current government believes the funds were used to finance the elections last year and to cover 1MDB’s debts.

Finance Minister Lim Guan Eng, when asked to comment on the WSJ report, said the government was unaware of the revelations but would pursue the matter.

Najib, who has denied all wrongdoing in the 1MDB affair, faces 25 charges of corruption, money-laundering and abuse of power in relation to the funds of the state-backed investment fund.

I’m not privy to documents cited in WSJ article, says Azmin

ECONOMIC Affairs Minister Azmin Ali said today he was not privy to details of Wall Street Journal’s latest report alleging that China had, in 2016, offered to bail out 1Malaysia Development Bhd (1MDB) in return for lucrative stakes in railway and pipeline projects.

“I am not privy to those documents because when they raided Najib Razak’s premises and houses, the documents were already in the possession of the authorities.

“And, since the chargers are pending in court, we should not speculate or comments on the matter,” he said.

However, Azmin said the issue must still be looked into.

“The whole process must be transparent and I think that (is the) position taken by the new government,” he added.

He said the Pakatan Harapan government had made clear clear to all, including foreign countries, that it would ensure transparency and accountability.

“We need the support of foreign countries to assist the current government in all investigations pending (concerning 1MDB),” he said.

The Wall Street Journal had, in its review of minutes from a series of previously undisclosed 2016 meetings, reported that senior Chinese leaders had offered to help bail out 1MDB in return for lucrative stakes in railway and pipeline projects under its Belt and Road Initiative.

Within months of the meeting, Najib signed US$34 billion (RM139 billion) in rail, pipeline and other deals with Chinese state companies, to be funded by Chinese banks and built by Chinese workers.

– Bernama