KUALA LUMPUR (July 15): Finance Minister Lim Guan Eng said the reported seizure of more than RM1 billion of funds held by China Petroleum Pipeline Engineering Ltd (CPP) was not done under his ministry's instruction.
"I would like to clarify that the Ministry of Finance and myself have not issued any instruction of seizure. So if there is any instruction of seizure, you should refer to the enforcement agencies," Lim said when met by reporters at the Parliament lobby.
Singapore's The Straits Times daily reported the seizure of the funds from the Chinese state-owned company on Saturday. It said Putrajaya earlier this month ordered HSBC to transfer the funds in CPP's Malaysian account to a company owned by the Ministry of Finance, Suria Strategic Energy Resources Sdn Bhd (SSER).
This happened about a year after the government suspended two pipeline projects worth US$2.3 billion, for which CPP was the lead contractor, the report said.