THE Finance Ministry has denied that it had asked a bank to seize RM1 billion from China Petroleum Pipeline Engineering Ltd (CPP), said Lim Guan Eng.

“The Finance Ministry did not issue any instruction for seizure. So, if there is any instruction for seizure, you’ll have to refer to the enforcement agency. 

“That’s all I have to say for the moment,” Lim told reporters in Parliament’s lobby today.

The Straits Times reported on Saturday that Putrajaya had seized more than RM1 billion from the China owned company.

The report said that Putrajaya ordered banking giant HSBC to transfer funds held in CPP’s account in Malaysia to Suria Strategic Resources Sdn Bhd.

Suria Strategic Resources is wholly owned by the Finance Ministry.

Citing sources, the report said the move is linked to a dispute involving two multi-billion-dollar energy pipeline projects suspended in July last year over links to the 1Malaysia Development Bhd (1MDB).

Apart from its HSBC accounts, other CPP bank accounts were also frozen by the Malaysian government.

CPP, which was awarded the contract as lead contractor in November 2016 by the previous government, said the funds had been transferred out. – July 15, 2019.