Media Statement by Tony Pua in Petaling Jaya on
Monday, 3rd November 2008:
Has Datuk Seri Najib Tun Abdul
Razak misled Malaysians with regards to the purpose RM5 billion "loan"
from EPF to ValueCap?
In a shocking expose by
TheMalaysianInsider.com, it appears that the RM5 billion injection into
ValueCap Sdn Bhd was not intended as "additional" investment to support
the flailing stock market as suggested by the new Finance Minister – but
instead it's a rescue package designed for ValueCap Sdn Bhd to repay its
RM5.1 billion debt which is due in a few months.
In March 2003, Valuecap borrowed RM5.1 billion from shareholders
Khazanah, Kumpulan Wang Amanah Pencen and Permodalan Nasional Bhd to
invest in the stock market...
Valuecap's bonds were due to be repaid in February 2006, but the company
was given another three years to this coming February. At the end of
2006, the three shareholders each held RM1.7 billion in these bonds,
according to documents obtained by The Malaysian Insider.
Clearly in this case, the purpose of the RM5 billion "loan" from EPF to
ValueCap as instructed by the Finance Minister is a clear case of a mega
bail-out of Valuecap whose investment lifespan has already ended nearly
3 years ago.
We will like to call upon Datuk Seri Najib Abdul Razak to immediately
cancel the RM5 billion injection into ValueCap, particularly if after
nearly 6 years since its inception, it has failed to even protect the
principal value of the stocks despite the fact that the market has
enjoyed a spectacular bull run til early this year.
In addtion, we demand full and immediate accountability and transparency
of ValueCap investment since 2003, as per all international investment
funds to explain its inability to "repay" the initial loans from EPF,
Khazanah and Permodalan Nasional Bhd.
We would like to call upon the new Minister of Finance to withdraw the
RM5 billion injection to ValueCap which serves only deal with the
symtoms of global financial crisis and does not in anyway serve to
increase Malaysia's ability to face the challenges brought about by the
crisis. What is worse, is that it puts at risk the hard-earned
retirement savings of ordinary Malaysians.
* Tony Pua Kiam Wee, DAP National Publicity Secretary &
MP for Petaling Jaya Utara
http://dapmalaysia.org