‘I didn’t order seizure of China company funds’

15 Jul 2019 / 23:14 H.

KUALA LUMPUR: Lim Guan Eng has denied ordering the seizure of over RM1 billion from a Malaysian bank account of a Chinese state-owned company and transferring it to a company owned by the Finance Ministry.

The finance minister instead urged those with any queries pertaining to the matter to channel those questions to the relevant authorities.

“I would just like to say that the Ministry of Finance and myself, we did not issue any instructions of seizure (of the funds).

“So if there is any instruction of seizure, you should refer to the enforcement agencies. That’s all I want to say,“ he said briefly to the media when met in Parliament today.

Lim did not take any additional questions and left immediately.

Singapore’s Straits Times (ST) had on Saturday reported that more than RM1 billion held by China Petroleum Pipeline Engineering Ltd (CPP) was seized on the orders of the federal government, amid a dispute involving billion-ringgit pipeline projects that were suspended since last year.

It said the order was issued to HSBC earlier this month to transfer the funds held in CPP’s account in Malaysia, to a company wholly-owned by the ministry, Suria Strategic Energy Resources Sdn Bhd (SSER).

“CPP firmly abides by the laws of Malaysia and is perplexed by the unilateral transfer of monies without notifying CPP,“ the company was reported telling ST.

“Once we have further information, CPP will take the necessary and appropriate action to protect its rights. We hope that our Malaysian counterparts can resolve this with us through amicable means.”

HSBC’s Kuala Lumpur branch has declined to comment.

The government had previously said it was negotiating with China-based contractors on the compensation to be paid due to the cancellation of the pipeline projects.

email blast