KUALA LUMPUR (June 28): TRX City Sdn Bhd (TRX City) shared that the management had ring-fenced about RM2.4 billion from its initial investment to ensure that the company had the cash flow to meet its obligation for the Tun Razak Exchange (TRX) project.

"All financial matters were handled by 1Malaysia Development Bhd (1MDB)… at the same time, I have done my level best and ring-fenced about RM2.4 billion worth of money for the TRX project," TRX City chief executive officer Datuk Azmar Talib was explaining to the media about the police report lodged over the RM3 billion worth of government funds that was misappropriated by 1MDB.

At the beginning of this week, TRX City has said it lodged a police report on Friday that a total of about RM3 billion was transferred from TRX City to 1MDB and that the transfers were made between mid-2012 and early 2017 based on instructions from 1MDB and were diverted from their intended use.

Azmar added that the announcement by the new government of its support for TRX City project and its agreement to inject an additional RM2.8 billion into TRX City to complete the project has given a boost to both the local and foreign investors.

He said one of the ways to ensure that such misappropriation of funds does not repeat again is through the receipt of the money in stages.

"Bear in mind that the RM2.8 billion [is] meant for the infrastructure, which will be completed by 2024. We will get the money in progress, as and when we required," Azmar said.

So far, the Malaysian government has injected about RM3.69 billion into TRX City for infrastructure works, bringing the total funding from the government to RM6.5 billion.