Lembaga Tabung Haji (TH) has decided not to cancel its transaction of the land purchased at the Tun Razak Exchange owned by Malaysia Development Berhad (1MDB), said its chairman Seri Abdul Azeez Abdul Rahim.

Its board of directors have instead agreed to sell the 1.5 acre (0.61 hectare) land in respect to its depositors’ sensitivity and trust.

Abdul Azeez said the decision was made unanimously by its board of directors today morning after being advised by the Prime Minister, Datuk Seri Najib Tun Razak.

He added that the Prime Minister had advised for the land to be sold to avoid its (TH) name from being tarnished as it involved a business transaction with 1MDB.

“Earlier we (board of directors) unanimously agreed not to sell the land, we wanted to develop it but the PM called and advised to sell to avoid slander against TH.

“We will sell it as fast as possible. There is already a third party offering to purchase the land,” said Azeez during a special press conference held today.

The press conference was also attended by all of TH board of directors and Chief Executive Officer (CEO) Tan Sri Ismee Ismail.

Abdul Azeez also clarified that there were no conflict of interest in the purchase of land owned by 1MDB, as its (TH) CEO was not involved in any negotiations related to the land purchase.

He said, Ismee who is also a member of the 1MDB board of directors was excluded from the whole process of the land purchase worth RM188.5 million.

Ismee had also denied that the land was purchased by TH as an effort to bailout 1MDB as claimed by some quarters.

Abdul Azeez however, defended the purchase by stating that TH will gain an annual return of 9 percent from the transaction.

“We will find another land to invest in. This proves that it is not tough to sell this land. We only held the land title for one month and it is still profitable for us.

“We will hold a press conference as soon as the land is sold.

“After this, don’t ask why Tabung Haji sold it to a non-Muslim,” said Abdul Azeez.

Yesterday former premier, Tun Dr Mahathir Mohamad had urged for TH to cancel the transaction of the land purchase as soon as possible.

READ ALSO: Tabung Haji funds shouldn't be used to 'bailout' 1MDB: Dr Mahathir


Dr Mahathir said that the depositors cash used by Tabung Haji for the transaction is not owned by them.

"The money in Tabung Haji is from contributors and Tabung Haji has been entrusted to manage it well, in a manner permitted in Islam. This money is not Tabung Haji’s. It is sad when this money is used to bailout 1MDB from its debts,” said Tun M.

"1MDB made a massive profit. Actually, this land was supposed to be a Bumiputra trade centre. But 1MDB has set aside this project. Is this how Tabung Haji utilises the money that people have entrusted them with?" he questioned.

"This plan needs to be cancelled immediately," he said.

Deputy Prime Minister Tan Sri Muhyiddin Yassin has also expressed support for the statement by the UMNO Youth in calling on the Finance Ministry and Tabung Haji to explain on the land purchase by Tabung Haji from 1Malaysia Development Berhad (1MDB).

READ ALSO: UMNO Youth wants government, Tabung Haji to clarify TRX land transaction