Only small risk to EPF’s power company investments, says Ahmad Maslan

KUALA LUMPUR: There is only a “small risk” in the investments made by the Employees Provident Fund (EPF) in 1Malaysia Development Berhad’s (1MDB) take-over of two independent power producers, says Deputy Finance Minister Datuk Ahmad Maslan (pic).

He said EPF had bought RM200mil in bonds from the 1MDB in 2009 which were fully guaranteed by the Government.

“In 2003, EPF invested in independent power producer Panglima Power Sdn Bhd and in Jimah Energy Ventures Sdn Bhd in 2005.

“Both of these investments amounted to RM1.52bil,” he told the Dewan Rakyat during question time on Tuesday.

Ahmad said 1MDB then took over Panglima Power and Jimah Energy Ventures in 2012 and 2014 respectively.

“At this time, these investments have small risks,” he said in reply to a supplementary question by Nasrudin Hassan (PAS – Temerloh).

It was reported that EPF chief executive officer Datuk Shahril Ridza Ridzuan had said he did not see the fund’s bond holdings in 1MDB as a risk.

On another matter, Ahmad said the EPF does not have any stake in “unethical” investments such as businesses involving gambling, alcohol, weapons for war and interests with countries without diplomatic relations with Malaysia like Israel.

“As of December last year, over 40% or RM250bil from the EPF’s total asset investments are syariah-compliant,” he said.