FINANCE minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz should explain how failed Genting Hong Kong got RM2.5 bil in collateral-free loans from three Malaysian banks, said Pasir Gudang MP Hassan Abdul Karim.
The cruise operator filed for bankruptcy earlier this month, and Singapore’s Straits Times reported on Sunday (Jan 23) that Maybank, CIMB and RHB were among the company’s chief unsecured creditors with a combined exposure of US$600 mil (RM2.5 bil).
“The issue has been raised by Opposition leader Datuk Seri Anwar Ibrahim via a media statement on Thursday (Jan 27) and Finance Minister Tengku Zafrul must immediately answer why these banks were allowed to give unsecured loans to the now-bankrupt Genting Hong Kong,” Hassan said.
Unsecured loans are typically considered to be high-risk to lenders as the debt is not backed by any asset, leaving the lender with nothing to claim in the event the borrower defaults.
Permodalan Nasional Berhad (PNB), Khazanah Nasional Berhad and the Employees Provident Fund (EPF) are major shareholders in the three banks and could be exposed to any failure to recover the loans.
“As a member of parliament, I echo the Opposition leader’s question to Tengku Zafrul who is a former banker as to why unsecured loans were so easily given to a gambling company,” Hassan continued.
“Previously the Parliament was told that Putrajaya will use RM5 bil from the National Trust Fund (KWAN) to cover its COVID-19 vaccination programme as the federal government’s coffers have been significantly thinned out.
“This is clearly not the case when it comes to Genting KH. How could the Government, who is responsible of safeguarding the people’s welfare, allow the three banks to give unsecured loans to a gambling company in Hong Kong that has now gone bankrupt?”
“The Finance Minister must answer how Genting HK is going to pay back the RM2.5 bil unsecured loan.”
Hassan went on to voice his concern that the unsecured loans will result in losses for the three Malaysian banks.
“This will in turn affect the country and the rakyat as well,” he remarked. – Jan 28, 2022
Photo credit: The Edge Markets
