SRC: RM4b from KWAP accounted for in balance sheet

(Bernama) – SRC International Sdn Bhd says the RM4 billion borrowed from the Retirement Fund (Incorporated) (KWAP) is accounted for in its balance sheet, in accordance with the standard accounting and governance practices.

“None of it was misappropriated as claimed by those with malicious intent,” it said in a statement rebutting a media report that claimed that the funds had been misappropriated.

“We strongly reject these allegations. Having conducted an internal investigation, we believe these claims were based on documents that were fabricated, therefore representing a deliberate attempt to mislead the public.”

To recap, the Malaysian Anti-Corruption Commission (MACC) is still investigating SRC over the RM4 billion fund. It had said recently that the case could be completed before the end of the year.

SRC said with respect to its corporate social responsibility activities, any expenditure by the company on social programmes was derived from cash income generated from its investments.

Over the years, this has amounted to about RM500 million excluding other non-cash items, providing the company with strong income to use for such purposes, SRC said.

In the interests of full disclosure, SRC is asking the Attorney-General’s Chambers to conduct a full investigation into these claims and the alleged charge sheet published by Sarawak Report, which is currently banned in Malaysia, and fund flows diagrams published by an online media.

“We ask that the parties responsible for these fabrications be identified, given that their authenticity was denied by the MACC on August 3.”

These false allegations represent a serious attack on SRC, which resulted in negative financial and reputational repercussions for its business, it said.