Najib must resign over Tabung Haji-1MDB land deal

Heads must roll over the controversial 1Malaysia Development Bhd-Lembaga Tabung Haji land deal, but the buck stops with Prime Minister Datuk Seri Najib Razak who must bear the ultimate responsibility by resigning, a DAP lawmaker said today.

Bukit Bendera MP Zairil Khir Johari said this was the first time a political issue had gained so much traction and agreement from both sides of the political divide with strong statements coming from not only DAP, PKR and PAS, but also Umno leaders past and present.

"To begin with, the entire debacle would not even have occurred had it not been for 1MDB’s misadventures, resulting in the sovereign fund racking up a massive debt of RM42 billion, which it now appears unable to repay.

"Therefore, responsibility lies on the shoulders of the man who is not only chairman of 1MDB’s Board of Advisers, but also the person responsible for appointing all the key personnel in both Lembaga Tabung Haji and 1MDB.

"There does not appear to be any other option. Najib must bear the ultimate responsibility by resigning with immediate effect," Zairil said in a statement issued in Kuala Lumpur today.

Tabung Haji, a savings fund for Muslims to go to Mecca on pilgrimage, confirmed two days ago it bought a parcel of land from state strategic investor 1MDB's Tun Razak Exchange (TRX) project for RM188.5 million, which it claimed was a "discounted" price.

It plans to build a residential tower at the site. News of the purchase was first published in The Benchmark blog three days ago when it revealed documents related to the land purchase. Tabung Haji has lodged a police report over the leaked documents.

Zairil said it was clear the "ship is sinking", where in addition to Umno Youth chief Khairy Jamaluddin's stinging reproach on the land deal, Deputy Prime Minister Tan Sri Muhyiddin Yassin, and Rural and Regional Development Minister Datuk Seri Shafie Apdal had also warned of a loss in confidence and raised serious concerns over the management of 1MDB.

He said given the rate the issue was unfolding, Putrajaya look set to capitulate unless visible steps were taken immediately to ensure accountability.

"In plain and in no uncertain terms, those responsible must be made to pay the price," said Zairil, who is also DAP assistant secretary-general.

It has been revealed that senior Tabung Haji executives – group managing director and CEO Tan Sri Ismee Ismail, deputy group MD/CEO Datuk Johan Abdullah, investment panel member Tan Sri Abdul Samad Alias and director Tan Sri Mohd Irwan Siregar Abdullah – also hold top positions in 1MDB, where Ismee is a director in the state investment fund, Johan is chairman of 1MDB subsidiary Edra Global and both Abdul Samad and Irwan sit on the 1MDB advisory board.

Irwan is also the Ministry of Finance secretary-general.

He also asked whose interests did Ismee, Johan, Abdul Samad and Irwan have in mind when they decided to put the land deal together, questioning if the four were acting on behalf of the millions of Muslim depositors of Tabung Haji or if they were more concerned about the flagging financial fortunes of 1MDB.

He added that the entire senior management and board of directors of Tabung Haji had also failed to carry out their fiduciary duty as managers of public funds and also as trustees of a religious duty.

He added this was not limited to those with a foot each in Tabung Haji and 1MDB, but to the entire team including Tabung Haji chairman Datuk Sri Abdul Azeez Abdul Rahim.

"The whole Tabung Haji leadership must be replaced," Zairil said