MoF seeks RM10m for wholly-owned unit MyHSR Corp

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KUALA LUMPUR: The Ministry of Finance (MoF) has moved a motion to seek the Dewan Rakyat’s endorsement to invest RM10 million in MyHSR Corp Sdn Bhd, a company wholly owned by the MoF Inc.

The motion, which was included in the Order Paper since Monday, is expected to be decided today.

The motion reads: “This House resolves, in accordance with the provisions of subparagraph 8(3) (a)(iv) of the Financial Procedure Act 1957, that the Government through Minister of Finance (Incorporated), makes an investment by the acquisition of a number of 10 million ordinary shares of MyHSR Corp Sdn Bhd, a company wholly owned by the MoF Inc at the value of RM1 unit per share.”

No data on MyHSR Corp was found when The Edge Financial Daily conducted a Companies Commission of Malaysia (CCM) search. Hence, there is no publicly available information of the company, including what its core operations are.

Deputy Finance Minister Datuk Ahmad Maslan did not respond to queries from The Edge Financial Daily on MyHSR Corp.   

Pandan Member of Parliament (MP) Rafizi Ramli who had also conducted a search of the company but to no avail told The Edge Financial Daily that this was the first time he has heard of this company. 

“This company is a new company which has not even been registered with the Companies Commission.

“This is also the first time MPs ever heard of it and there is no explanation [as to] what the company is for, yet we are asked to approve RM10 million for it,” Rafizi said.

Rafizi, who has been monitoring SRC International Sdn Bhd, another company wholly owned by MoF Inc, expressed his concern about the lack of information provided to the MPs.

“I am concerned about the manner information is kept from MPs and we are asked to decide on financial matters which we are not even aware,” he added.

To recap, a few MoF Inc-owned units such as 1Malaysia Development Bhd (1MDB), SRC International and Pembinaan PFI Sdn Bhd have been in the limelight with opposition lawmakers exposing their financial condition. 

1MDB owed RM42 billion as at March 31, 2014, and faced a cash flow problem as stated by Second Finance Minister Datuk Ahmad Husni Hanadzlah. Putrajaya had to inject RM950 million as standby credit into the government-owned strategic investor to service its debt.

In the case of SRC International, it had invested RM3.81 billion of a RM4 billion loan taken from the Kumpulan Wang Persaraan (Diperbadankan) (KWAP) in natural resources in Mongolia-based Gobi Coal and Energy Ltd. 

The company also recorded a loss of RM164 million for the financial year ended March 31, 2014 (FY14).

Meanwhile, Pembinaan PFI, which is 99.9% owned by MoF Inc, has accumulated RM26.6 billion in debt in just seven years of its inception according to the financial statement audited for FY13 ended Dec 31.

 

This article first appeared in The Edge Financial Daily, on April 9, 2015.