KUALA LUMPUR, May 26 — The Employees Provident Fund (EPF) faced minimal exposure in its nearly RM2 billion investments in 1Malaysia Development Bhd (1MDB), Datuk Ahmad Maslan claimed today
The deputy finance minister said these investments included the RM200 million in 1MDB bonds subscribed in 2009, and RM1.52 billion the fund pumped into 1MDB subsidiaries Panglima Power Sdn Bhd (PPSB) and Jimah Energy Ventures Sdn Bhd.
“There is a risk in these investments, but it is small,” Ahmad told Parliament during question time.
But he declined to elaborate on what he meant by “small”, and again when asked by reporters later.
“Ask the EPF CEO,” Ahmad told reporters before leaving Parliament.
Last week, EPF chief executive officer Datuk Shahril Ridza Ridzuan said 1MDB bonds subscribed to by the EPF were not risky as it is guaranteed by the government.
He had said the bond is highly secured and there is no risk to EPF’s investment.
He also said EPF puts the same confidence in its exposure in 1MDB subsidiaries PPSB and Jimah Energy Ventures Sdn Bhd.
1MDB has put Prime Minister Datuk Seri Najib Razak under intense pressure over the past few months over allegations of mismanagement of the state-owned fund that led to it racking up some RM42 billion in debt from the time it was incorporated in 2009.
Last week, second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said 1MDB’s US$1.103 billion (RM3.9 billion) redeemed from a Cayman Islands account and parked in Singapore’s BSI Bank was in the form of assets and not cash, as previously claimed by Arul Kanda.
Apart from the Public Accounts Committee, the Auditor-General is also conducting a probe on 1MDB and is expected to deliver a report to Putrajaya early next month.
