This was the question posed by Kelana Jaya MP Wong Chen to Prime Minister Najib Razak.

Marstan is a subsidiary of billionaire Ananda Krishnan’s Tanjong Energy Holdings Sdn Bhd.

Speaking to reporters during a press conference, he pointed out that Marstan was a non-financial foreign entity and it was peculiar that the company was able to issue loans.

“If a company provides loans with interest without an appropriate licence, then the loan is technically illegal.”

Wong also pointed out that the Public Accounts Committee (PAC) report also noted that the interest rate charged by Marstan was a whopping 8.5%.

“If the term loan is for 14 months, a quick calculation shows a payment of interest of around RM198 million.

“How is it that a non-bank foreign entity can charge interest at 8.5% to 1MDB, a Ministry of Finance Inc entity?

“I, therefore, ask the finance minister to explain if this loan is contrary to the Financial Services Act.”

Wong subsequently questioned the early loan repayment made by 1MDB in April 2016, saying that the parliamentary reply given to his question earlier wasn’t an adequate answer.

“The finance minister replied that early repayment was made because it had money from the Edra Global Energy sale. This answer did not explain why the repayment was made ahead of schedule.

“Why the apparent favouritism to Ananda’s company? The finance minister also refused to give an answer on how much interest was paid.

“My follow-up question now to the finance minister (Najib) is how a legal obligation on the part of Tanjong to reinvest in 1MDB’s Powertek Investment Holding Sdn Bhd, instead netted RM198 million in interest earnings for Tanjong.”