PUTRAJAYA: The government is seeking to recover RM4 billion lent to SRC International Sdn Bhd (SRC) by the Retirement Fund (Incorporated) or Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
In a statement today, Finance Minister Lim Guan Eng said the government, as a guarantor to the RM4 billion loan made by the former 1Malaysia Development Bhd (1MDB) subsidiary, was currently burdened to repay the amount to KWAP.
"This financial burden of SRC is fully borne by the federal government. From the RM4 billion, RM3.6 billion (USD1.1 billion) was transferred to several offshore entities and banks.
"They are BSI Bank in Switzerland (more than USD800 million), Bank Julius Baer & Co. Ltd in Hong Kong (USD 250 million) and a coal exploration company in Mongolia (USD 60 million)," he said.
The government, through SRC, will be taking civil action to recover the fund and also working alongside authorities in the respective countries to track down the money, Lim said.
"The government is also working with legal advisers to determine the right civil action which can be taken to get back all SRC's assets," he said.
Lim said the move doesn't include the RM42 million of SRC fund allegedly abused.
Former prime minister Datuk Seri Najib Razak is currently facing seven charges at the Kuala Lumpur High Court of abuse of position, criminal breach of trust and money-laundering over the RM42 million of SRC International’s funds.
Finance Ministry took over SRC International from 1MDB in 2012, before taking a second loan from KWAP.
On June 15, 2019, prosecution witness of the SRC International trial, Afidah Azwa Abdul Aziz, told the court that SRC International owed KWAP RM4.15 billion after borrowing RM4 billion in 2011 and 2012.
"We hope to get back the money so that it can be paid back to KWAP as well as reducing the government's burden," Lim said.
On Monday, Lim said the ministry had paid nearly RM1.69 billion of SRC International’s RM4.15 billion debts owing to KWAP, with the most recent payment of over RM344 million last month.