KUALA LUMPUR: A total 84 assets owned by sovereign wealth fund Khazanah Nasional Bhd were disposed of when former prime minister Datuk Seri Najib Razak was the board chairman between 2009 and 2018, the Dewan Rakyat was told today.
Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said this included the 13 assets disposed of in 2016 alone.
“Disposal of assets is nothing new (as recorded) under the (previous) administration between 2009 and 2018.
In 2009, the prime minister was Pekan (Najib). He disposed eight assets (2009); seven in 2010; eight in 2011; 10 in 2012; six in 2013 and 2014 each; 10 in 2015; 13 assets in the run-up to elections in 2016; 12 in 2017; and four assets in the first four months of 2018,” he said in reply to a supplementary question by Datuk Seri Ahmad Hamzah (BN-Umno-Jasin) who asked for justification on the disposal of the wealth fund’s assets.
Najib resigned as chairman of Khazanah Nasional board in May last year.
Azmin said the government was aware of the RM6.3 billion loss recorded in fiscal year 2018, saying it was due to un-strategic investments during the previous administration.
“The assets they invested in did not bring added value and give optimum profits to Khazanah.
“The losses were in fact recorded during the previous administration, but the depreciation value was not factored in the financial statement. There was a lack of transparency and accountability in financial management.
“That’s why when we came into power we took into account the depreciation value of the assets that were made as investments, which explains the RM6.3billion loss.”
Azmin cited the 16 per cent Khazanah stake in IHH Healthcare Bhd which was sold to Mitsui & Co Ltd, which was sold at a 20 per cent premium at RM6 per unit.
“For example, we divested 16 of the 42 per cent stake in IHH to Mitsui, which was its partner, and not to a new entity. It was sold at 20 per cent higher than the market price of RM5. The assets sold gave the best value and did not incur loss. The assets were sold to settle the debts that we have to bear,” he said.