KUALA LUMPUR (May 19): Retirement Fund Inc (KWAP) has 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 in Bandar Malaysia Sdn Bhd, 1MDB Energy Ltd, 1MDB Global Investment Ltd and Jimah Energy Ventures Sdn Bhd," said Najib who is also the Prime Minister in his written reply to PKR MP Rafizi Ramli.
Meanwhile, EPF had subscribed to bonds issued by 1MDB totalling RM200 million in 2009, according to Najib, the bonds are guaranteed by the government.
Also, EPF has exposure investments in 1MDB’s subsidiaries, Panglima Power Sdn Bhd (PPSB) and Jimah Energy Ventures Sdn Bhd (JEV), totalling RM1.52 billion, said Najib.
EPF’s investment in PPSB was made in 2003 and Jimah Energy Ventures in 2005, the Prime Minister explained, adding that the investments took place before 1MDB bought over the power plants in 2012.
Currently, 1MDB is working on an initial public offer exercise to list its power assets on Bursa Malaysia. However, the listing exercise has been delayed due to hiccups.
Najib is responding to Rafizi’s request to reveal the details of investments and holdings (equities, bonds, loans, etc) by 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 Sdn Bhd, which is wholly owned by the Ministry of Finance, to repay the RM4 billion loans that KWAP has granted it. The big sum has been used to purchase a mining company in Mongolia.
KWAP has drawn 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 Tun Razak Exchange (TRX) in Kuala Lumpur.
The news report came after Lembaga Tabung Haji has acknowledged that the pilgrim fund has acquired a parcel of land in 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 has directed Tabung Haji to sell off the tract.