KHAZANAH Nasional had no control over how Putrajaya used the RM3 billion it had raised through a share issue, which was allegedly used to service 1Malaysia Development Berhad’s (1MDB) debts, the sovereign fund said today.

The sovereign fund said the shares were issued to the Finance Ministry, which was headed then by Najib Razak.

It said in a statement that on March 7, 2011, RM3 billion in redeemable cumulative convertible preference shares was issued by Khazanah to the Finance Ministry .

“The RCCPS was essentially capital injected that the Finance Ministry as our 100% shareholder has a right to call back (i.e. redeem) at any time.

“On March 14, 2014, the Finance Ministry redeemed RM1.8 billion of the RM3 billion issued. And in August, the ministry redeemed a further RM1.199 billion of the remaining RM1.2 billion in RCCPS,” it said.

“Khazanah has no control over the utilisation of the funds once the RCCPS has been redeemed.” – May 24, 2018.