CIVIL Service Pension fund KWAP is confident that a RM4 billion loan to a subsidiary of scandal-ridden state investor 1Malaysian Development Berhad (1MDB) will be repaid.

The subsidiary, SRC International, is still regularly servicing its interest payments to KWAP every six months, said KWAP chief executive officer Wan Kamaruzaman Wan Ahmad.

SRC International is due to start paying the principal on the loan in September this year, Wan Kamaruzaman told reporters here.

“They are still servicing (the loan), there is no issue and the loan has a government guarantee. So we have no worries about them (paying) as they are servicing the regular interest payments every 6 months.

“They will start payment on the principal this year, in September,” Kamaruzaman told reporters after launching KWAP’s new offices with Prime Minister Najib Razak, who had also headed 1MBD’s advisory board.

Questions arose over whether the RM4 billion loan would be repaid after SRC International got dragged into probes surrounding the 1MDB financial scandal in mid 2015.

It was reported that RM42 million had been siphoned from KWAP and transferred into Najib’s personal accounts. Najib has denied any wrong doing while Attorney-General Apandi Ali has also exonerated him.

Recently, whistleblower website Sarawak Report claimed that RM9.5 million of the siphoned KWAP funds had been transferred from Najib’s accounts to prominent Umno lawyer Shafee Abdullah in 2013 and 2014.

The allegations have sparked an outcry from Pakatan Harapan, who claimed that the transfers happened at about the same time Shafee was appointed a special prosecutor in the sodomy trial of former opposition leader Anwar Ibrahim. – June 5, 2017.