PETALING JAYA: The government is pursuing civil action to recover about RM4 billion borrowed by SRC International Sdn Bhd, a former subsidiary of 1MDB, from the Retirement Fund Incorporated (KWAP).
Finance Minister Lim Guan Eng said the country was cooperating with the relevant authorities to trace the funds before returning them to KWAP.
“Considering that a huge amount of the funds had been used across the world, the government is taking necessary measures to repatriate as much of the RM4 billion as possible,” he said in a statement today.
“We are also working together with our legal advisers to determine the civil action that can be taken to retrieve SRC’s assets.”
Lim noted SRC had borrowed the funds from KWAP with a government guarantee, and that the firm was taken over by the Finance Ministry in 2012 from 1MDB, meaning all financial burdens by SRC is to be fully borne by the government.
He said of the RM4 billion borrowed, RM3.6 billion (or US$1.1 billion based on the currency exchange then) was moved out of Malaysia to several entities and banks via a number of off-shore subsidiaries.
These included US$800 million to BSI Bank in Switzerland, US$250 million to Bank Julius Baer & Co Ltd in Hong Kong and US$60 million to a coal exploration company in Mongolia.
“Whatever funds that will be recovered in this endeavour will be used to repay the loan from KWAP.
“At the same time, this will also reduce the government’s burden in making repayments on behalf of SRC, providing additional allocations for economic development and the rakyat’s welfare.”
Lim said the efforts to retrieve the funds do not include the portion of SRC’s RM42 million, which was alleged to have been misappropriated from the organisation and is currently the subject of seven criminal charges in proceedings held at the Kuala Lumpur High Court. — Bernama
