KINIBIZ Former finance minister Daim Zainuddin had advised Prime Minister Najib Abdul Razak to be careful when 1Malaysia Development Bhd (1MDB) came into being in 2009, said a source.

According to the source, Daim first learned of the controversial outfit when it was the Terengganu Investment Authority (TIA), intended to be a sovereign wealth fund to promote the economic interests of the state.                                      

“He was asked to offer his opinion on it by the Agong,” said the source, who asked for anonymity in order to preserve relationships.

TIA was set up in end-February 2009 after then deputy prime minister Najib announced its formation three days before the 2009 by-election in Kuala Terengganu, held after the passing of incumbent member of parliament Razali Ismail.

To kick things off, TIA quickly raised some RM5 billion in a Putrajaya-guaranteed bond issue. However after the funds were raised, the federal government took over the entity and renamed it 1MDB months after TIA was formed in 2009.

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