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Shannon Teoh, The Malaysian Insider Legislators from across the political divide agreed that the lack of information concerning the proposed RM5 billion loan to ValueCap from the Employees Provident Fund raised questions over the move.
However, there was no consensus over the implications of the state investment company still owing RM5.1 billion in interest-bearing unsecured bonds. The Malaysian Insider had today broken the news that ValueCap Sdn Bhd still owed the sum in bonds which were due to mature in Feb 2006 but was then extended to Feb 2009. The debt was incurred in March 2003, when ValueCap borrowed the amount from shareholders Khazanah Nasional, Kumpulan Wang Amanah Pencen and Permodalan Nasional Bhd to invest in the stock market. Chua Tee Yong (BN-Labis) said that he understood the "public sentiment" that "they are taking my money and screwing around" due to the coincidental timing and amounts involved. DAP parliamentary leader Lim Kit Siang concurred, saying that the revelation that the bonds are due to mature soon raised "valid questions over a lack of proper accountability and transparency in the running of ValueCap." "The credibility of the government is at stake as there are already reasons for suspicions over this proposal, the root of which is the crisis of confidence in our government." DAP publicity chief Tony Pua also released a statement on behalf of the party, asking if Finance Minister Datuk Seri Najib Razak has "misled Malaysians with regards to the purpose of the RM5 billion loan from EPF to ValueCap?" "The purpose of the RM5 billion load from EPF to ValueCap as instructed by the Finance Minister is a clear case of a mega bail-out of Valuecap whose investment lifespan has already ended nearly 3 years ago.," the statement from the Petaling Jaya Utara MP said. DAP further called on Najib, who is also Deputy Prime Minister, to immediately cancel the injection into ValueCap, as it "has failed to even protect the principal value of the stocks despite the fact that the market has enjoyed a spectacular bull run till early this year." It also demanded a full disclosure of ValueCap investment since 2003 to explain its inability to repay the initial loans. BN MPs however, said that it could not be concluded that EPF funds would be used to bail Valuecap out from its outstanding debt. "Without further details, I cannot speculate on how the funds will be utilised. But I hope the government releases more information, then question marks can be answered," Chua told The Malaysian Insider. Datuk Tajuddin Abdul Rahman (BN-Pasir Salak) also insisted that there were many ways for businesses to restructure loans and the extension of the bonds' maturity did not mean that the EPF money would be squandered. "Valuecap is an investment company run by professionals and the government would have considered the pros and cons of the move. After all, the funds are guaranteed by the government," Tajuddin added. "EPF is meant to provide funds to earn profits from such investments. Valuecap is just the vehicle. What is wrong with buying undervalued stocks?" The Umno MP also said that the government was not covering up details but it was standard practice in the business world to keep strategies and plans close to one's chest insteaf of "declaring everything to the whole world." When contacted, Khazanah Nasional said it would respond to the issue tomorrow.
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I have no confident that umno is using the money wisely, may be just to save those GLCs and a small group of umno cronies.
how could them survive without gomen interference? typical adat tongkat and ketuanan melayu.