A little-known Hong Kong firm called Bridge Partners has been appointed to manage around RM7 billion (US$2.3 billion) of the controversial funds of 1Malaysia Development Bhd (1MDB).

 

Public information on the company is scarce, PKR's Pandan MP Rafizi Ramli said today, and he questioned the decision to hand the management of the funds to a company that is not monitored under Malaysia's own laws.

 

Rafizi last week asked the Finance Ministry to state the annual fees paid to the firm to manage the funds, but the ministry refused to disclose the amount, stating that such information must be referred to the company itself.

The PKR MP said that a sovereign fund such as 1MDB should have the ability to manage its funds just like other public funds.

"The Employee Provident Fund (EPF), Permodalan Nasional Berhad (PNB) and the Tabung Haji all have their own departments to manage investment funds.

“This way, people's money do not have to be wasted paying a foreign firm to manage the funds," he said.

He said 1MDB's move to appoint the firm can be interpreted as the company not having the "skills and expertise" to handle fund investments on its own.

"The refusal of the government to answer my question strengthens the perception that 1MDB is not being managed transparently," he said, labelling 1MDB the "number one threat" to the government's financial stability.