Khir breached the Exchange Con­trol Act and the Anti-Money Laundering Act in purchasing Mecca homes

SHAH ALAM: The purchase of several apartment units in Saudi Arabia by Permodalan Negeri Selangor Berhad (PNSB) in 2007 may have contravened two laws.

In a statement released to the media by Selangor Mentri Besar Tan Sri Khalid Ibrahim’s political secretary Nik Nazmi Nik Ahmad yesterday, it said the purchase could have breached the Exchange Con­trol Act and the Anti-Money Laundering Act.

He said records showed that the PNSB board of directors had approved the purchase of five units of the property amounting to RM8.35mil.

However, PNSB had transferred RM25.6mil for the purchase of 12 units of the said property without the board of directors’ approval.

The seven extra units were then sold to an individual for RM17.25mil.

Nik Nazmi said that while the purchase was traded in Saudi Arabia Riyal by PNSB, it was sold in ringgit to the individual.

“To date, PNSB has no records indicating that the individual had obtained approval from the relevant authorities to invest in properties abroad,” he said.

“This indicates that the transaction may be illegal as individuals can only invest overseas with the endorsement from the relevant authorities.”

Nik Nazmi said the circumstances surrounding the purchase and sale of the seven properties also suggests that PNSB had aided and abetted in the alleged illegal transaction.

“We urge former Mentri Besar Datuk Seri Dr Mohd Khir Toyo and the individual involved in the purchase and eventual sale of the properties to come forward and clear the matter in the interest of the state,” he added.

The purchase of the properties was made under Dr Khir’s name as he was the PNSB chairman at the time of the transaction.

When contacted, Dr Khir said that as far as he knew, the transaction was done according to regulations.

Nik Nazmi said the state government had now referred the matter to Bank Negara for advice to prevent the current state government and PNSB management from being implicated in the alleged fraudulent transaction. (The Star)