KUALA LUMPUR: Khazanah Nasional Bhd today clarified that it had no control over utilisation of the RM3 billion Redeemable Cumulative Convertible Preference Shares (RCCPS) once it had been redeemed.
The sovereign wealth fund said in a statement that the redemption of the RCCPS was, in effect, a repayment of shareholder capital by Khazanah to the Ministry of Finance (MoF).
Referring to the article, “Former Malaysia government used money raised from Khazanah to pay 1MDB dues – sources” by Reuters today, Khazanah said as the sole holder of the RCCPS, the MoF possessed the right to redeem the RCCPS at any point of time.
Khazanah also said that on March 7, 2011, it issued the RM3 billion RCCPS to the MoF.
The RCCPS is essentially capital injected that the MoF as its 100% shareholder has a right to call back (redeem) at any time.
The MoF redeemed RM1.8 billion of the RM3 billion issued on March 14, 2014. It further redeemed RM1.199 billion on Aug 11, 2017.