BNM: Land deal under probe, officers on leave

> They opted to do so pending outcome of internal review into RM2 billion purchase

PETALING JAYA: Bank Negara Malaysia (BNM) said an internal review of its RM2 billion land purchase is under way and the relevant officers are on leave of absence pending the outcome.

In a brief statement yesterday, the central bank said that it had in August commissioned a review by an independent party in relation to the purchase of the government land known as Lot 41, which is earmarked for development of a financial education hub.

“The review is still ongoing. To facilitate the internal review, relevant officers of BNM have opted to take a leave of absence,” BNM added.

Last May, Finance Minister Lim Guan Eng confirmed that proceeds from the land sale and a RM1.199 billion redemption of redeemable cumulative convertible preference shares of the remaining RM1.2 billion owed to the Ministry of Finance by Khazanah Nasional Bhd were used to make interest payments for 1Malaysia Development Bhd’s (1MDB) debts.

Calling it an arms-length transaction with fair value as determined by an independent private sector valuer, then BNM governor Tan Sri Muhammad Ibrahim denied that political pressure had led to the land deal. However, the issue continued to gain traction, culminating in his offer to resign.

When met at Sime Darby Property Bhd’s AGM yesterday, former BNM governor Tan Sri Zeti Akhtar Aziz said she had no knowledge of the land purchase as it did not occur during her tenure with the bank.

“I know nothing about it at all and I have left the bank coming up to three years now. It’s not during my time,” she said.

“Furthermore, to give the bank space after I left, I wasn’t in touch with the bank at all. I see hardly anyone from the bank and I’ve moved on with my own life,” she added while declining to comment further.