The DAP has called urged that the federal government’s eight investment funds be subjected to full and regular parliamentary oversight, such as by the Public Accounts Committee.

DAP secretary-general Lim Guan Eng said this is to ensure that their performances not only maximise financial returns but also optimise national interest instead of the private benefit of cronies.

“We have received complaints of the federal government’s investment funds having an undue influence not only on stock prices of certain companies but also on Bursa Malaysia due to the huge amount of investment funds in its disposals,” said the Penang chief minister in a statement today.

“There must be full accountability and transparency of the eight federal government investment funds totalling RM1,270 billion to avoid any insider trading, misappropriations and abuse of public trust,” he added.

The funds in question are listed below.

 

Lim said there is also a need for closer scrutiny of the performance of these funds and asset management companies because so much public money is involved.

 

He cited the two biggest funds being the Employees Provident Fund, which had total assets of RM597.82 billion as at Dec 31, 2013, and Permodalan Nasional Bhd, with about RM237 billion at the end of 2012.

These two companies own substantial stakes in the largest companies on Bursa Malaysia.

“What is of greater concern is Khazanah Nasional Bhd because of its ownership of the financially troubled Malaysian Airline System Bhd,” Lim pointed out.

It is noted that MAS had accumulated losses to the tune of RM8.53 billion as at March 31, 2013.

 

Lim said another federal government investment fund that has attracted controversy is the 1Malaysian Development Bhd.

This is due to its huge billion ringgit debt in just four years of existence and difficulty in submitting its financial returns on time, leading to a change of its accountant and auditors, Lim added.

 

“Due to the huge RM1,270 billion of public money involved that belongs to 28 million Malaysians, it is imperative that the public be fully informed and that its management passes the most stringent scrutiny,” Lim said.

“This is so that there is no hint of suspicion of any irregularity, impropriety or insider trading,” he added.