KUALA LUMPUR (Oct 16): Opposition lawmaker and Petaling Jaya Utara Member of Parliament Tony Pua has questioned the whereabouts of the RM4 billion Islamic loan taken by SRC International Sdn Bhd, a wholly-owned subsidiary of the Ministry of Finance (MoF), from Kumpulan Wang Persaraan (Diperbadankan) (KWAP) that was guaranteed by the federal government.

According to Pua, the RM4 billion loan bears a profit rate of 4.65% for the first three years and a profit rate equivalent to the Malaysian Government Securities profit rate plus 0.7% for the remaining tenure. The loan was disbursed in two tranches in August 2011 and March 2012.

He said MoF had acquired SRC International from loss-making 1Malaysia Development Bhd (1MDB) in February 2012, after the second RM2 billion tranche was disbursed.

Despite the size of the loan and entity, Pua said the financial accounts of SRC International was last filed with the Companies Commission of Malaysia (SSM) for the financial year ended March 31, 2012 (FY12).

“The accounts for FY13 which were due by September last year have not been submitted,” he told reporters at Parliament today.

“The question is, why is it so difficult for a company with hardly any activity other than a mega-loan submit its financial statements to the authorities?  I had asked this question in Parliament and received a response from the finance minister on Oct 14.

“There were however no reasons given for the delay, other than to say that the financial statements for both March 2013 and 2014 will be submitted before the end of this month,” said Pua.

In its filing with the SSM for FY12, it was reported that SRC is principally involved in projects associated with the exploration, extraction, processing, logistics and trading of conventional and renewable energy resources, natural resources and minerals, including all other activities related thereto, any partnerships, joint ventures or arrangements for sharing profit, union of interest or cooperation and property holding.

For FY12, SRC did not have any revenue, but stated that the company had obtained a RM4 billion Islamic term financing from KWAP that was guaranteed by the government.