PARLIAMENT Deputy Finance Minister Ahmad Maslan has described the Employees Provident Fund's (EPF) RM1.72 billion bond investment in the debt-laden 1Malaysia Development Berhad (1MDB) as 'low-risk'.

"This is a low-risk investment," said Ahmad during the question-and-answer  at Parliament today. He did not elaborate.

Nasrudin Hassan (PAS-Temerloh) has asked the if the bond investment in 1MDB was risky, as Islam had always urged its followers to stay away from risk.

Rafizi Ramli (PKR-Pandan) had before this urged the EPF, the Retirement Fund Incorporated (KWAP) and the Pilgrims Fund Board (Tabung Haji) to dump their total investment of RM4 billion in 1MDB.

This was because, he said, 1MDB had been exposed to a cross default where its failure to service a loan has triggered a demand by a consortium of six foreign banks that 1MDB pay the US$975 million (RM3.6 billion) loan four months ahead of schedule.

Finance Minister II Ahmad Husni Hanadzlah will be tabling 1MDB's restructuring report to the Cabinet this Friday in which plans are outlined to prevent the state-owned company from defaulting.

'Government-guaranteed'

On May 19, EPF CEO Shahril Ridza Ridzuan also said RM200 million in bonds subscribed by the EPF from 1MDB in 2009 were not risky as they were guaranteed by the government.

He said said the bonds were highly secured and there was no risk to EPF’s investment.

“It (government-guaranteed) is the highest form of security,” he said on the sidelines of the International Social Security Conference 2015 in Kuala Lumpur then.

He said EPF was putting the same confidence in its exposure totalling RM1.52 billion in 1MDB power-generationsubsidiaries Panglima Power Sdn Bhd (PPSB) and Jimah Energy Ventures Sdn Bhd.

Related stories

KJ: DPM's right on 1MDB but video leak's wrong

Najib had control of TIA, but what about 1MDB?

1MDB - Najib garbles, Bung warbles

MP: Charge Arul Kanda, Shahrol with contempt

PM: 1MDB top guns won't run away from PAC

'1MDB duo's PAC absence doesn't make sense'

Tabung Haji to gain small profit on TRX land sale

PAS to Najib: Call snap polls to silence Dr M

1MDB’s Cayman money in cash, assets or units?

1MDB: Bank Negara confirms S'pore report

Ahmad: EPF's investment in 1MDB 'low-risk'

RM185m went up in smoke, in Mongolia

Nazir calls 1MDB's no-show 'unacceptable'

Kit Siang's 5 posers to 1MDB's 'ponteng' crew

What exactly are 1MDB assets in S’pore bank?

When an ex-PM accuses the PM of lying