Rafizi: EPF's money in 1MDB still risky despite govt backing


  • Nation
  • Wednesday, 20 May 2015

KUALA LUMPUR: The Employees Provident Fund’s investment in 1MDB totalling RM1.72 bil is still risky even though it is guaranteed by the government, said Pandan MP Rafizi Ramli (pic).

This is because EPF and other government agencies which have a stake in 1MDB, such as the Retirement Fund Inc (KWAP) and Lembaga Tabung Haji, will not be able to immediately reclaim the amount invested if 1MDB defaults on its whopping RM42bil loan.

“If 1MDB fails, there is a high likelihood that the government will negotiate a delay in repayment with these government agencies or replace their investments with non-monetary assets.

“As government agencies, it is very probable that they will have to concur with the government’s request,” Rafizi told reporters in Parliament on Wednesday.

Rafizi was rebutting claims by EPF chief executive officer Datuk Shahril Ridza Ridzuan that its investment was secure as it was guaranteed by the government.

Rafizi also disagreed with Shahril’s claims that EPF would be given priority in reclaiming its RM1.72bil investment in the event 1MDB encountered further financial trouble.

EPF has subscribed to RM200mil in bonds in 1MDB and has an exposure of RM1.52bil in the state investment arm’s subsidiaries, namely Panglima Power Sdn Bhd and Jimah Energy Ventures Sdn Bhd.

Rafizi urged EPF, KWAP and Tabung Haji to liquidate and sell the bonds they held in 1MDB now before the financial state of the debt-laden company got worse.

“They must take into consideration the concerns of depositors and sell the bonds now, at a discount if need be.

“If 1MDB is unable to pay its loans, then surely the government’s main priority in bearing the cost will be to restore the economy. And that means any claims made by KWAP, EPF and Tabung Haji will be delayed,” Rafizi added.

In a written reply to the Pandan MP on Tuesday, the Finance Ministry revealed that KWAP had invested a total of RM1.4bil in 1MDB and its subsidiaries.

This is in addition to the RM4bil previously loaned by KWAP to SRC International Sdn Bhd, which is a 1MDB subsidiary.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Nation

YTL: Audit conducted shows smartphones given out for home-based learning are safe to use
Taxis, e-hailing vehicles allowed to travel between greater KK districts
Covid-19: About one million shots administered by private sector so far
Health Dept investigating alleged Father's Day gathering at deputy minister's house
Health Ministry: 21 new Covid-19 clusters, 13 from workplaces
Cops arrest man who allegedly fed alcohol to baby
Selangor reps from both sides agree that state assembly should reconvene soon
Graduates from non-teaching backgrounds to receive training to overcome teacher shortage
Melaka lawyers want Covid-19 immunity in order to defend clients
Motorcyclist and pillion rider killed in collision with lorry in Sabah

Stories You'll Enjoy


Vouchers