‘PFI and SRC: 1MDB-type scandals in the making?’

Petaling Jaya Utara MP Tony Pua asked the Ministry of Finance today to disclose details of the joint venture between SRC International and Gobi Coal and Energy Ltd, for fear it could be yet another scandal akin to the controversial partnership between 1Malaysia Development Berhad (1MDB) and PetroSaudi International.

Pua noted that the “modus operandi” of SRC being set up under 1MDB, before being placed under the Ministry of Finance about a year later—after receiving a RM4 billion loan—was suspicious since it was reminiscent of the 1MDB-PetroSaudi joint venture, which was terminated and converted into a loan to keep it off the books.

The RM4 billion loan SRC received was from Kumpulan Wang Amanah Persaraan (KWAP) and is guaranteed by the federal government.

Pua also raised concerns that SRC is co-led by Nik Faisal Ariff Kamil, formerly of 1MDB and a known associate of Jho Low, who is accused of siphoning US$700 million from the 1MDB-PetroSaudi joint venture.

When the issue was raised last year, Pua said that the government’s failure to come clean on SRC’s activities—including the specific projects it was involved in and the way in which it spent the initial RM4 billion loan—would only lead to speculation of a misappropriation of funds.

Yesterday, Serdang MP Ong Kian Ming wrote in KiniBiz about Pembinaan PFI, a mysterious entity registered under the MoF, whose stated purpose is to “source the financing through financial loans to undertake private finance initiative projects and other related work”.

Pembinaan PFI, according to Ong, took a RM20 billion loan from the Employees’ Provident Fund (EPF), with the latter deciding to restructure the loan in a deal involving the Federal Land Commission (FLC) instead of collecting its debt.

Under the deal, the FLC leased parcels of land to Pembinaan PFI, before Pembinaan PFI sub-leased the land back to FLC and charged it rental amounting to RM29.2 billion, which would be used to pay back the loan to EPF.

As Ong noted, Mohd Irwan Serigar was director of both Pembinaan PFI and EPF during this restructuring.

Pembinaan PFI also took another RM19.5 billion loan from EPF in 2014 under a Bai Muajjal Syariah facility, meaning that its total debt might be as high as RM47.4 billion.

‘PFI and SRC: 1MDB-type scandals in the making?’
12 March 2015 – rakyattimes.com


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