Thursday 28 Mar 2024
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KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) had investments and holdings totalling RM1.4 billion in 1Malaysia Development Bhd (1MDB) and its subsidiaries as at March 31, said Finance Minister Datuk Seri Najib Razak.

“KWAP has investments and holdings in 1MDB and its subsidiaries — Bandar Malaysia Sdn Bhd, 1MDB Energy Ltd,1MDB Global Investment Ltd and Jimah Energy Ventures Sdn Bhd [JEV],” said Najib, who is also the prime minister, in his written parliamentary reply to PKR Member of Parliament Rafizi Ramli yesterday.

The Employees Provident Fund (EPF), meanwhile, subscribed to bonds issued by 1MDB totalling RM200 million in 2009, said Najib. The bonds are guaranteed by the government.

In addition, the EPF has exposure to investments in 1MDB’s subsidiaries, Panglima Power Sdn Bhd (PPSB) and JEV, totalling RM1.52 billion, said Najib.

The EPF’s investment in PPSB was made in 2003, and JEV in 2005, the prime minister said, adding that the investments took place before 1MDB bought over the power plants in 2012.

Currently, 1MDB is working on an initial public offering to list its power assets on Bursa Malaysia. However, the listing exercise has been delayed.

Najib was responding to Rafizi’s request to reveal the details of investments and holdings (equities, bonds, loans and so on) by the EPF and KWAP in 1MDB and its subsidiaries (including former subsidiary SRC International Sdn Bhd) up to March 2015.

Rafizi has urged the prime minister to order SRC International, which is wholly owned by the Finance Ministry, to repay the RM4 billion in loans that KWAP has granted it. The big sum was used to purchase a mining company in Mongolia.

KWAP drew public attention after a news report saying that the civil servants’ retirement fund intends to acquire land from 1MDB to participate in the development of the Tun Razak Exchange (TRX).

The news report came after Lembaga Tabung Haji acknowledged that the pilgrims’ fund had acquired a parcel of land in the TRX for RM188.5 million cash.

The land purchase came under fire as it was perceived as a move to bail out cash-strapped 1MDB. Due to the public outcry, Najib directed Tabung Haji to sell off the land.

 

This article first appeared in The Edge Financial Daily, on May 20, 2015.

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