MoF paid almost RM1.7b to KWAP

The next payment of RM43m will be on Sept 30, 2019, which will be the interest


THE Ministry of Finance (MoF) has paid almost RM1.7 billion in principal and interest on behalf of scandal-ridden SRC International Sdn Bhd to the Retirement Fund Inc (KWAP).

Finance Minister Lim Guan Eng (picture) said in a statement yesterday that since 2015, MoF has been committed to repaying its debts to KWAP in a timely manner to ensure there was no default and the interest of the pensioners funds are protected.

“From that amount, the latest payment made on Aug 29, 2019, was RM344.6 million which included RM300 million in principal and RM44.6 million in interest,” he said.

According to Lim, the next payment of RM43.02 million will be on Sept 30, 2019, which will be the interest and is part of the balance payment of RM3.8 billion which will end in 2022.

SRC International borrowed RM4 billion from the KWAP on Aug 26, 2011, (the first loan amounted RM2 billion) and on March 27, 2012, (the second loan being RM2 billion), which were fully guaranteed by the federal government.

SRC’s shares were transferred to MoF on Feb 15, 2012, by means of share takeover of interim dividend-in-specie payment.

In lieu of its critical financial state since 2015, SRC was unable to fulfil its obligation of repayment to KWAP.

“As the financing is guaranteed by the government and to avoid a default on the repayment, it is the duty of the government to ensure that the sche-dule of repayment is adhered to,” Lim added.

Despite the financial constraints, Lim said MoF will ensure a sufficient allocation is made to settle the financing to KWAP, and prove the federal government’s ability to manage the financial burden of the 1Malaysia Development Bhd (1MDB) and SRC scandals inherited from the previous administration.

SRC International Sdn Bhd was founded on Jan 7, 2011, as a subsidiary under 1MDB and dealt with resources used in generating electricity.

The nature of its business was primarily involved in the exploration, extraction, processing, logistics and trading of conventional and renewable energy resources, natural resources and minerals including all other activities related including any partnership, joint ventures or any arrangements for sharing profit.

Former Prime Minister Datuk Seri Mohd Najib Razak is currently facing six charges of money laundering and breach of trust in the transfer of RM42 million into his account from SRC.