Finance Ministry to ensure RM43m SRC payment made to KWAP

The Finance Ministry will ensure a sufficient allocation is made available to settle SRC International Sdn Bhd’s (SRC) upcoming interest payment of RM43.02 million to the Retirement Fund Incorporated (KWAP).

Based on the schedule of repayment, the payment date is Sept 30.

The amount in question is part of the balance of financing of RM3.80 billion which ends in 2022, said Finance Minister Lim Guan Eng in a statement today. 

“As the financing is guaranteed by the government and to avoid a default on the repayment, it is the duty of the government to ensure that the schedule of repayment is adhered to,” he added.

The latest payment of RM344.68 million was made on Aug 29 and encompassed the RM300 million principal and interest of RM44.68 million.

SRC is a subsidiary of 1MDB. 

The company had borrowed RM4 billion from KWAP in two loans amounting to RM2 billion each on Aug 26, 2011 and on March 27, 2012. Both loans were fully guaranteed by the federal government.

The Finance Ministry has, to date, made a payment of RM1.69 billion in principal and interest. 

“The Finance Ministry will ensure a sufficient allocation is made to settle the financing to KWAP, and prove the federal government’s ability (although facing financial constraints) to manage the financial burden of the 1MDB and SRC scandals inherited from the previous administration,” said Lim.

- Bernama