KWAP’s explanation creates confusion

KUALA LUMPUR (May 13): In response to media reports that it has bought land in 1Malaysia Development Bhd’s (1MDB) project Tun Razak Exchange (TRX) to build its head office, Kumpulan Wang Persaraan (KWAP) yesterday came forward to explain the situation.

However, its explanation created even more confusion as the retirement fund had first issued a four-paragraph statement but later withdrew it and replaced it with a new one-paragraph statement.

In the second statement, two paragraphs, in which KWAP admitted that it was reviewing opportunities in TRX but that no decision has been made, were taken out.

KWAP did not explain why it decided to remove the two paragraphs.

KWAP has had dealings with 1MDB before, when it gave a RM4 billion loan to SRC International Sdn Bhd in 2011. SRC was then wholly-owned by 1MDB, but the ownership was later transferred to the Ministry of Finance.

SRC's use of the RM4 billion to buy coal mining assets in Mongolia has also come under scrutiny recently as very little information has been revealed about the deal. KWAP is also believed to have subscribed to some 1MDB bonds.

This article first appeared in The Edge Financial Daily, on May 13, 2015.

The first statement (top) was issued at 7.51pm,while the second was issued at 9.26pm yesterday