Putrajaya’s SRC loses another RM89 million, says PKR

PKR secretary-general Rafizi Ramli has revealed that Putrajaya's SRC International Sdn Bhd has lost a further RM89 million from its joint-venture with a Middle Eastern company Aabar Investments. – The Malaysian Insider pic, April 21, 2015.

Putrajaya's SRC International Sdn Bhd has lost a further RM89 million from its joint-venture with a Middle Eastern company Aabar Investments bringing its total losses in investment value to RM204 million to date, PKR said today.

Secretary-general Rafizi Ramli said the investment impairment of RM89 million from the joint-venture to mine coal in Mongolia was registered in the government-owned company's latest financial statement.

He said for the same financial year, SRC also showed losses of RM115 million in value.

"This means that for the financial year 2014 alone, SRC recorded investment impairments of RM204 million from its investment in the coal mine in Mongolia, that is, RM115 losses from its own investments and RM89 million losses from the joint venture," Rafizi told the press today at PKR's headquarters in Petaling Jaya.

SRC holds 50% of its joint venture with Aabar and had invested RM184 million into the deal in 2013.

Rafizi said since the funds used by SRC for its investments involved RM4 billion as a loan from the Retirement Fund Incorporated (KWAP), the RM204 impairment was no small matter.

"What more if we take into account the RM3.1 billion SRC's investments on which there is no information and which cannot be audited," he said.

The RM3.81 billion investment was raised by DAP lawmaker Tony Pua in March who had wanted to know details of how the money was used.

The Finance Ministry had said that SRC invested the funds in Gobi Coal & Energy Ltd, a Mongolian-based company, but provided no other details than that.

Pua had said that the ministry's response contradicted with that of auditor Deloitte Malaysia, which classified the RM3.81 billion as an amount "available for sale investment involving open-ended funds, quoted shares, bonds and time deposits".

Rafizi said many pensioners have been contacting him to express their anger over SRC's use of KWAP funds for investment purposes.

"They include civil servants who have been absorbed into working for statutory bodies such as Bank Simpanan Nasional and the Employees Provident Fund (EPF)," he said.

He said there were "thousands" of pensioners who have had trouble receiving their pension funds and questioned why these people were being denied their due, when government-owned companies such as SRC and also 1Malaysia Development Bhd (1MDB) were being allowed to make investments that were unaccounted for.

- TMI