DAP calls Putrajaya’s SRC another financial scandal in the making

Petaling Jaya Utara MP Tony Pua believes the dealings of SRC International Sdn Bhd, a former subsidiary of the troubled 1Malaysia Development Bhd, can potentially turn into another financial scandal. – The Malaysian Insider file pic, March 12, 2015. 

DAP today sounded the alarm on another possible financial scandal similar to 1Malaysia Development Bhd's (1MDB) dubious dealings, this time with SRC International Sdn Bhd, a former subsidiary of the troubled state investment fund which had taken a RM4 billion government-backed loan.

Petaling Jaya Utara MP Tony Pua said SRC International had taken the loan from the Retirement Fund Incorporated (KWAP) that was disbursed in two tranches in August 2011 and March 2012.

But the company was placed directly under the Finance Ministry before the end of March 2012, he added.

"This modus operandi appears similar to how the PetroSaudi joint venture was terminated and converted into a loan on the very last day of the March 2010 financial year to avoid having to report the details of the venture," Pua said at a press conference in the Parliament lobby today.

He was referring to 1MDB's joint venture with PetroSaudi International in 2009, a deal which was eventually terminated but not before 1MDB had paid US$700 million as repayment to PetroSaudi, funds which according to documents and emails exposed went to businessman Low Taek Jho.

Pua today questioned whether SRC International's joint venture with Mongolian mining company, Gobi Coal & Energy Ltd, was similar to the 1MDB-PetroSaudi "scam".

The DAP national publicity secretary said the answer he got when he raised the question in Parliament yesterday was "scary", as the Finance Ministry refused to provide any details.

Pua said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah had merely answered his question by confirming SRC International's investment with Gobi Coal at 50%.

"The answer is scary because it sounded exactly the same when I had queried the Minister over the past few years about 1MDB's 2009 US$1 billion joint venture investment in PetroSaudi.  

"It was only last month after the Joint Venture Agreement was exposed when we found out that the PetroSaudi joint venture was an elaborate scam to immediately siphon US$700 million into a company controlled by Jho Low and his associates," Pua said.

Also speaking on the same issue in the Parliament lobby today was Pandan MP Rafizi Ramli, who said pensioners and civil servants should sue KWAP for approving the RM4 billion loan to the little-known company.

Rafizi said it was a "careless investment" and added that PKR would help protect the interest of pensioners and civil servants.

- TMI