Finance ministry to ensure enough cash to repay KWAP for SRC loans
Lim Guan Eng says his ministry has repaid a total of RM1,691,822,628 in principal amount and interests so far.
PETALING JAYA: The finance ministry today said it is committed to ensuring that there are adequate allocations to repay the pensioners’ retirement fund (KWAP), which approved a RM4 billion loan to SRC International Sdn Bhd.
SRC International borrowed RM2 billion twice – on Aug 26, 2011 and March 27, 2012 – from KWAP.
Finance Minister Lim Guan Eng said the onus is on the federal government to comply with financing the scheduled repayments since Putrajaya guaranteed the payments.
This is also to ensure that there are no defaults in payments, he said in a statement today.
Lim said the ministry has been committed to fulfilling the obligation since 2015 as well as protecting the interests of KWAP and pensioners.
He said the ministry has paid a total of RM1,691,822,628 for SRC International so far.
The latest payment was made on Aug 29, amounting to RM344,681,265, which includes RM300 million in principal amount and interests of RM44,681,265.
“Based on the repayment schedule, the next repayment date is on Sept 30, involving an amount of RM43,023,748 (in interests),” he said.
This figure, he said, is part of the remaining repayment of RM3,807,858,447 that will end in 2022.
Lim also said this proves that the ministry, despite being in financial difficulties, is able to manage the financial burdens of the 1MDB and SRC scandals that have been inherited from the previous administration.
SRC is a wholly-owned subsidiary of 1MDB, which is under Finance Ministry Incorporated.
Former prime minister Najib Razak is facing six charges of money laundering and criminal breach of trust in the transfer of RM42 million to his account from SRC International.
Stay current - Follow FMT on WhatsApp, Google news and Telegram
He is also accused of abusing his power as prime minister by giving government guarantees on SRC International’s RM4 billion loan from Retirement Fund Inc.