KUALA LUMPUR: Amanah Raya Bhd (AmanahRaya), which is 99.99% owned by the Minister of Finance Inc and 0.01% by the Federal Commissioner of Lands, has denied claims by an opposition lawmaker that it had extended a RM2 billion loan to troubled 1Malaysia Development Bhd (1MDB), saying they are “unfounded and malicious”.

Earlier yesterday, Member of Parliament for Tanjong Ng Wei Aik was reported as saying that AmanahRaya gave the RM2 billion loan to 1MDB in 2014, which has yet to be repaid and has affected AmanahRaya’s cash flow.

“AmanahRaya wishes to state that the media reports are unfounded and malicious. We deny that AmanahRaya has ever extended any loan to 1MDB,” it said in a statement yesterday.

“We take seriously such unfounded and malicious allegations against us and will not hesitate to take any available legal recourse to protect our business and reputation,” it warned.

The company also noted that it observes strict governance in all its dealings through its investment committee’s and board of directors’ approval.

AmanahRaya also pointed out that the appointment of its chairman “went through the normal process of appointment”. Datuk Seri Reezal Merican Naina Merican is currently the company’s chairman.

Earlier yesterday, in a separate statement, 1MDB also denied it took a RM2 billion loan from AmanahRaya.

“There is no truth in the claim by an opposition MP that 1MDB has taken a RM2 billion loan from AmanahRaya,” its president and group executive director Arul Kanda Kandasamy said.

This article first appeared in The Edge Financial Daily, on June 11, 2015.