Putrajaya: SRC International funds in natural resource, coal investments

Petaling Jaya-Utara MP Tony Pua had earlier claimed that SRC International was removed from 1MDB’s books and parked directly under the Ministry of Finance in 2012. ― File pic
Petaling Jaya-Utara MP Tony Pua had earlier claimed that SRC International was removed from 1MDB’s books and parked directly under the Ministry of Finance in 2012. ― File pic

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KUALA LUMPUR, March 18 ― SRC International Sdn Bhd, which has been targeted by opposition lawmakers for receiving a RM4 billion loan on a government guarantee, has invested its funds in natural resources and coal both domestically and overseas, the Finance Ministry said.

In a short written reply to Petaling Jaya-Utara MP Tony Pua dated March 16, the ministry said SRC International had committed to both direct investments and joint-venture deals with international partners.

“SRC International Sdn Bhd will evaluate investment proposals according to SRC's mandate as a long-term strategic company,” the ministry said, without giving any details or the value of the investments made.

Pua today said the written answer does not explain what has happened to some RM3.81 billion allegedly invested by SRC International into a joint-venture with Gobi Coal & Energy Ltd in a project in Mongolia.

He claimed that the ministry's reply contradicted the firm's own explanation of how it spent the funds in its 2014 financial statement.

“The (company's) accounts clearly state that the money went to open ended funds, quoted shares, bonds and time deposits. The ministry said it's in long-term investments and joint-ventures.

“Is it in a joint-venture? Or is it in open ended funds? Which is right? Or are both right with coverups?” the DAP national publicity secretary claimed.

Pua added that nowhere in SRC International's financial statement was the Mongolia deal mentioned, nor was there any reference to Gobi Coal & Energy.

Last week, Putrajaya confirmed with Pua in a parliamentary reply that SRC International entered a 50-50 joint-venture with Gobi Coal and Energy, but did not reveal how much was invested by the Malaysian firm in the deal.

Pua had earlier claimed that SRC International, a company founded in 2011 as a 1 Malaysia Development Berhad (1MDB) subsidiary, was removed from 1MDB’s books and parked directly under the Ministry of Finance in 2012.

Last week, PKR's Pandan MP Rafizi Ramli also declared that he will file a civil suit against Kumpulan Wang Amanah Pencen (KWAP) ― the civil service retirement fund ― for its allegedly “careless” approval of a government-guaranteed RM4 billion loan to SRC International.

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