EPF: No risk as 1MDB bonds are govt guaranteed

It is the highest form of security, says its CEO

KUALA LUMPUR: The RM200 million bond subscribed by the Employees Provident Fund (EPF) from 1Malaysia Development Bhd (1MDB) in 2009 is not risky as it is guaranteed by the government.

EPF chief executive officer Shahril Ridza Ridzuan said the bond is highly secured and there was no risk to EPF’s investment.

“It (government guaranteed) is the highest form of security,” he said on the sidelines of the International Social Security Conference 2015 here today.

In a written response to Rafizi Ramli (PKR-Pandan) in Parliament, the Finance Ministry said EPF had subscribed to RM200mil in bonds issued by 1MDB in 2009.

The ministry also stated that EPF also has invested RM1.5bil in 1MDB subsidiaries, Panglima Power Sdn Bhd (PPSB) and Jimah Energy Ventures Sdn Bhd (JEV).

It said the EPF’s investment in these subsidiaries, PPSB and JEV, took place in 2003 and 2005 before the government investment arm took over the companies in 2012 and 2014.

– BERNAMA