Reveal findings into GLC with RM29b in debt: NGO tells MACC

 

Transparency International Malaysia (TI-M) today called for the MACC to reveal what they found so far regarding a government-linked company (GLC) which was RM29.68 billion in debt.

The anti-corruption NGO also called for a Royal Commission of Inquiry (RCI) into the Finance Ministry-owned Pembinaan PFI Sdn Bhd.

In a statement, TI-M president Muhammad Mohan questioned the lack of accountability and transparency over the handling of the case.

“When these purported ‘private-financing’ initiatives are guaranteed and financed by government agencies, and funding is provided by banks which are mostly owned by Government Linked Investment Companies (GLICs); one must ask, are these projects only ‘private’ in name, to avoid accountability?

“If the MACC has conducted a thorough investigation into the case and has found absolutely no wrongdoing… then the MACC should clear the GLC’s name with their findings,” he said.

Pembinaan PFI was set up on Sept 28, 2006, as a special purpose vehicle to finance development projects in the Ninth Malaysia Plan.

It was reported in 2020 that the company had a debt level of RM29.68 billion as of June 30 that year.

Muhammad (above) in his statement also questioned the lack of updates on the projects that were supposed to be financed by Pembinaan PFI.

“Furthermore, where are the Federal Land Commission and Pembinaan PFI Sdn Bhd’s disclosures and updates on these high value projects, more than a decade since their inception?

“TI-M echoes the call from (anti-corruption NGO) C4 and civil society for an RCI into this multi-billion ringgit scandal, with transparent disclosure to Parliament, to avoid the makings of another 1MDB, SRC International, or Sabah Watergate.

“Our pension and retirement funds are not a source of off-book financing for risky and questionable projects,” he added.

It was reported that Pembinaan PFI was funded by the government's Consolidated Development Fund which in turn is funded by government borrowings and any excess revenue from the Consolidated Revenue Fund.

According to a Public Accounts Committee (PAC) report in 2013, Pembinaan PFI raised RM30 billion from the Retirement Fund Incorporated (Kwap) and Employees Provident Fund (EPF) back in 2007.

Last month, the Centre to Combat Corruption and Cronyism (C4) called for a RCI to be set up to look into Pembinaan PFI.

The organisation also called on the MACC to explain a 2018 investigation into the company. - Mkini