RM1.5b from development coffer paid to KWAP to service SRC loan

The federal government used over RM1.5 billion from its development allocation to service SRC International's government-guaranteed loans with the Retirement Fund Incorporated (KWAP).

According to the Auditor-General's Report on the government's financial statement for 2021, the company also still owes the government another RM597.55 million in direct loans.

"SRC International has taken government-guaranteed loans from KWAP of RM2 billion each in 2011 and 2012.

"The loan repayment started in 2014. The principal amount as of 2021 stood at RM0.985 billion, a decrease of RM1.5 billion or 60.4 percent compared to 2020 (RM2.485 billion).

"In 2021, the government has serviced the principal amount of RM1.5 billion and interest of RM40.29 million using the development allocation," said the report.

The Auditor-General's Report was presented to the Parliament today. A soft copy of the full report has also been made available on the department's website.

It stated that SRC also only managed to pay RM3.25 million, or 0.5 percent, from a total of RM600.8 million in loans it took from the government.

This means the company still owes Putrajaya RM597.55 million.

SRC International was set up in 2011 as a subsidiary of 1MDB, a troubled government investment fund.

The company came into the spotlight after then prime minister Najib Abdul Razak was implicated in a plot to siphon money from SRC and 1MDB.

The scandal has led to Najib being the target of authorities’ investigations after the collapse of the BN government in 2018, and saw him later slapped with seven corruption charges involving RM42 million of SRC funds.

On July 28, 2020, the High Court in Kuala Lumpur sentenced Najib to 12-year jail and fined RM210 million after finding him guilty of all the charges - one count of abuse of power, three counts of criminal breach of trust (CBT), and three money laundering charges.

However, Najib only started serving the sentence on Aug 23 this year, after both the Court of Appeal and Federal Court upheld the High Court's decision. - Mkini