Questions on Pembinaan PFI’s RM17.4 billion spending

DAP MP questions Pembinaan PFI’s RM17.4 billion spending

As the Public Accounts Committee (PAC) prepares to meet tomorrow over Pembinaan PFI Sdn Bhd, a government-owned firm with billions of ringgit in liabilities, a DAP MP has raised 10 questions over the little-known company’s dealings.

Serdang MP Ong Kian Ming said the PAC should ask Treasury secretary-general and Pembinaan PFI director Tan Sri Dr Mohd Irwan Serigar Abdullah where the RM17.4 billion of the company’s spending had gone to, as it was not recorded in the Auditor-General’s (A-G) Report.

“The Auditor-General reported that at the end of 2013, RM18.6 billion from the original RM20 billion loan from EPF (Employees Provident Fund) had been spent by Pembinaan PFI.

“But the amount of actual spending on the projects listed in the A-G’s report only came up to RM1.2 billion. Where did the rest of the RM17.4 billion spending go?” he said.

Ong said Pembinaan PFI first took a RM20 billion loan from the EPF in August 2007, and it was due to be paid in full, with interest, in August 2012.

But the loan was restructured in August 2012 to payments twice a year for 15 years and the money would come from the Federal Land Commissioner (FLC) which leased federal land to Pembinaan PFI and then paid rental for this land to Pembinaan PFI as part of a lease-back agreement, he said.

“Why was such a complicated method used to pay back EPF? Why was not the RM20 billion plus interest paid back in full in August 2012?” said Ong.

He also wanted to know why the FLC, which has a 1% stake in Pembinaan PFI, was being used to repay the firm’s debts, and whether it had enough revenue to fund the approximately RM2 billion of annual payments to EPF for the next 15 years.

Ong added that Pembinaan PFI had taken out another RM19.5 billion loan from EPF last year, saying this raised questions of whether it could repay the loan as it had racked up liabilities of RM27.9 billion as of 2012.

He also asked what? was Putrajaya’s rationale for setting up Pembinaan PFI as a channel to fund development projects, when it could just rely on the development expenditure in the government budget.

On Pembinaan PFI’s apparent lack of transparency, Ong said the PAC should ask who was in the firm’s management team, and why it did not have a website set up to explain its activities.

DAP MP questions Pembinaan PFI’s RM17.4 billion spending
17 March 2015 – TMI


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