1MDB subsidiary borrowed RM4 billion to invest in non-existent Mongolian venture, says Rafizi
BY DIYANA IBRAHIM
Published: 13 January 2015 1:41 PM
PKR secretary-general Rafizi Ramli said the mining company allegedly purchased by 1Malaysia Development Berhad (1MDB) did not exist. – The Malaysian Insider file pic, January 13, 2015.Government-linked strategic investment company 1Malaysia Development Berhad (1MDB), through its subsidiary, had borrowed RM4 billion from the Retirement Fund Incorporated (KWAP), PKR's Rafizi Ramli revealed today.
He said the RM4 billion loan taken by the controversial sovereign fund's subsidiary, SRC International Sdn Bhd, in 2011 was to purchase a mining company in Mongolia.
However, the PKR secretary-general said his investigations into the matter revealed that the said company did not exist, raising questions on where the money was actually spent.
Rafizi said Putrajaya was a guarantor for the funds borrowed by SRC, just as it was for 1MDB.
"The investment has not happened until now and it is not known how the RM4 billion was spent," he said.
The Pandan MP urged the newly-appointed president and group executive director of 1MDB, Arul Kanda, to explain the issue.
"This is an early test of Arul Kanda's leadership in 1MDB to assess if he will be transparent in handling the people's important questions on 1MDB.
"If he is transparent, he can explain how the RM4 billion in loan was spent so far and how has it contributed to the country as it is the people's money," he said.
Rafizi, who is also PKR deputy president, said he would not hesitate to take action against the fund if there was no satisfactory explanation from Arul.
"I will make sure that these retirees who have put their pensions in KWAP take legal action against 1MDB and the finance minister as they have simply used pension money for a suspicious investment," he said.
Rafizi also refuted Arul's statements that 1MDB critics had only made speculations without knowing the facts.
"Arul Kanda's statement is arrogant and has set aside the people's concerns, including that of leaders and supporters of Barisan Nasional who want a reasonable explanation about 1MDB," he said. – January 13, 2015.
