The People’s Trust Council (MARA) initially thought the purchase of Dudley International House in Melbourne, Australia was a profitable deal, but when the federal agency smelled something rotten, it launched an investigation into the deal now alleged to be a money laundering scam, two months before Australia’s New Age even reported its concerns.
Yesterday the Australian newspaper reported that three Malaysians, including a “top MARA official” and a “former politician”, were involved in a property scam involving the sale of Dudley International House, near Melbourne’s Monash University.
The three Malaysians are said to have purchased the apartment building for AUD22.5 million (RM65.3 million) on behalf of MARA Inc, AUD4.75 million more than the building’s actual valuation. The difference in price was allegedly transferred back to the three via fake invoices issued to complicit property developers in Australia – esentially stealing Federal Government money used to buy up an overpriced property.
MARA chairperson Annuar Musa claimed that prior to the purchase, MARA thought that the building’s price was a bargain, and the terms of the deal were even approved by the National Economic Council.
The National Economic Council is chaired by Prime Minister Najib Razak, himself no stranger to allegations of financial mismanagement and impropriety, with sovereign development fund 1Malaysia Development Berhad still under investigation.
“To our knowledge at the time we did not know that the price was high. We thought that the price was below the market rate,” Annuar said today, as quoted by The Malay Mail Online‘s Syed Jamil Zahiid.
However, Annuar also stressed that when details of the deal did not seem to be on the up and up, MARA instigated an internal probe on its subsidiary MARA Inc, about two months before New Age published its exposé.
In fact, Annuar said the details contained in the New Age report provided further information that could help in MARA’s internal investigation.
“We will co-operate with the authorities investigating the case and will leave no stone unturned,” he said, as quoted by Neville Spykerman and Patrick Lee of The Star Online.
“Mara Inc officials have been given seven days to response to the allegations in writing.”
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