BY ELIZABETH ZACHARIAH
Published: 24 March 2015 1:51 PM
PKR secretary-general Rafizi Ramli wants SRC International Sdn Bhd to give back the RM4 billion it took from the Retirement Fund Incorporated. – The Malaysian Insider file pic, March 24, 2015.Prime Minister Datuk Seri Najib Razak has been urged to order the Finance Ministry-owned SRC International Sdn Bhd to return the RM4 billion it borrowed from the Retirement Fund Incorporated (KWAP) to purchase a mining company in Mongolia.
PKR secretary-general Rafizi Ramli said that SRC, a company that was "de-merged" from the government-linked strategic development 1Malaysia Development Berhad three years ago, had made losses of RM164 million without any gains, according to its latest financial statement.
"This means that the businesses of this company have not generated any income despite it having a RM4 billion loan which was borrowed from KWAP," he said in a press conference at the Parliament lobby today.
Rafizi said SRC's situation was akin to the modus operandi of other organisations that are linked with 1MDB, which is to borrow huge amount of funds with a guarantee from the government without stable business activities.
"Najib should now order SRC to return every single cent of the RM4 billion that was borrowed from KWAP, in the interest of civil servants," he added.
Rafizi had previously said that he was in discussions with lawyers including Sepang MP Hanipa Maidin to initiate a suit against KWAP for approving the loan.
The "careless investment", he said, was done without due diligence which puts pensioners' interests at risk.
"We will proceed with legal action in court against those involved to protect the interest of pensioners and civil servants.
"I am sure there will be a lot of civil servants, among them MPs, who will be willing to file a suit," he had said some two weeks ago.
1MDB has come under fire from Rafizi and other opposition politicians as well as former Prime Minister Tun Dr Mahathir Mohamad over the fund's heavy debts, its use of money and its opaque operations.
There were concerns over the firm’s debts estimated at some RM42 billion, just five years into its operations, amid softening of the ringgit against the US dollar. – March 24, 2015.
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