17
Jul
15

Pensioners worry about monthly payments after 1MDB scandal

Former civil servants are worried whether their monthly pensions will be affected as a company at the centre of the latest 1Malaysia Development Berhad (1MDB) probe had borrowed money from Retirement Fund Incorporated Inc (KWAP). –

KWAP, which was set up to help the government disburse pensions, had lent RM4 billion to SRC International Sdn Bhd, one of three companies raided on July 3 as a special government task force investigated claims it funnelled money into the bank accounts of Prime Minister Datuk Seri Najib Razak.

The fund had also invested RM1.4 billion in other 1MDB subsidiaries – Bandar Malaysia Sdn Bhd, 1MDB Energy Limited, 1MDB Global Investment Limited and Jimah Energy Ventures Bhd.

The probe by the task force was into allegations that SRC International and two other 1MDB-linked companies transferred money into Najib’s accounts between December 2014 and February 2015.

“We’ve had some members come up to us and ask whether their monthly pension payments would be affected (by the investigation),” said Datuk Omar Osman, who heads the 1Malaysia Civil Servants Retirees Club.

“We tell them not to worry because KWAP is doing what it can to secure the money that it has invested. Pensioners hope their monthly pensions would not be affected by what was going on in SRC.

“We hope that whatever KWAP does to help the government pay out pensions, it does with utmost care so as to not jeopardise monthly payments,” said Omar, who is a former president of Cuepacs, the umbrella group of public sector unions.

A pensioner who requested anonymity said KWAP’s ties to 1MDB’s problems were a topic of discussion among his former civil servant friends even before the current probe into Najib accounts.

“But it’s not like people are angry or they are about to go to the streets, because at the end of the day, they still receive their monthly payments,” said the former officer of a statutory body.

Presently, pensions are still being paid out by the government while according to KWAP’s website, the fund assists the government in funding those payments.

In order to meet this function, KWAP, to a limited extent, is allowed to invest in the stock market, properties and companies to generate an income.

Its loan to SRC International in 2011 has sucked KWAP into 1MDB’s troubles even before the probe into the Najib’s accounts was launched last week.

…more
Pensioners worry about monthly payments after 1MDB scandal
11 July 2015 – TMI

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