malaysianinsider | The DAP said today Deputy Prime Minister Datuk Seri Najib Razak’s explanation that the injection of RM5 billion from the Employees Provident Fund into ValueCap Sdn Bhd’s investment fund would not be used for bailouts has raised more questions.
"With so many credible foreign and local investment and fund managers with extensive experience in the local markets, why is it that the Government is not directing funds to these institutions to 'value invest'?" asked the party’s publicity secretary Tony Pua in a statement.
The Petaling Jaya Utara MP also questioned why ValueCap, which has been unable to repay a bond amounting to RM5.1 billion that expires in March next year, was being given an additional RM5 billion.
"ValueCap is set to become one of the rare fund management companies in the world which invests with nearly 100 per cent of its investment capital sourced from loans and not from investors," said Pua.
He said the government's move to guarantee the loan to ValueCap means taxpayers would have to bear the losses should the company fail to repay EPF...read more.
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