Thursday 28 Mar 2024
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KUALA LUMPUR (May 28): Kumpulan Wang Persaraan (Diperbadankan) (KWAP) said today SRC International Sdn Bhd has been making regular interest payments on its RM4.385 billion loan from KWAP and it will wait for the next payment period, which is every six months.

"Our exposure to SRC is government guaranteed. Going forward, I think we have to see whether SRC will be able to rehabilitate themselves," its chief executive officer Datuk Wan Kamaruzaman Wan Ahmad told reporters after meeting with the Council of Eminent Persons (CEP) today.

In 2011, the former 1Malaysia Development Bhd (1MDB) subsidiary took a RM4.385 billion loan from KWAP at an interest rate of between 4.3% and 5.1% per year to fund strategic overseas investments in energy resources.

The total repayment period is 10 years, which would see interest servicing in the first five years of the loan, while the remaining five years would see the interest and principal paid up.

Last November, former second finance minister Datuk Seri Johari Abdul Ghani admitted that SRC was in financial difficulty due to problems it faced in recovering money it had deposited in BSI Bank's branch in Singapore.

This came after Singapore authorities shut down the bank's operations for breaching money laundering regulations in a development allegedly linked to 1MDB.

Earlier today, KWAP had a session with the CEP to brief about its pension plans and its investments, Wan Kamaruzaman said.

He said he had explained some pension issues to the CEP and its plans to make the pension fund more sustainable.

KWAP is one of the series of government institutions scheduled to meet the CEP today, including Lembaga Tabung Haji, Permodalan Nasional Bhd, Lembaga Tabung Angkatan Tentera, Employees Provident Fund and Khazanah Nasional Bhd. The main focus for the meetings is to uphold the new government's efforts towards institutional reforms.

 

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