PKR vice-president Rafizi Ramli claimed Putrajaya was “trying to cover up their tracks” over previous investments by making amendments to the Retirement Fund Incorporated (KWAP) Act.

He alleged in the amendments tabled yesterday, the government has made three main changes which includes widening the investment scope of KWAP which allows it “to invest in more risky financial investments”.

The other amendments which have raised eyebrows include the removal of the Bank Negara Malaysia representative from the KWAP board and replacing with four other representatives under the finance minister.

This, Rafizi believes, allows Putrajaya to undertake more risky deals in the future, as well as also helping in covering up their tracks from actions like legal suits.

“These amendments in my opinion are clearly done to protect questionable investments like the RM4 billion loan to 1Malaysia Development Berhad (1MDB)’s subsidiary company SRC International Sdn Bhd.

“I also suspect these amendments are done as a preemptive strike to close any existing loopholes if there is any legal action taken against KWAP on its loan to SRC,” he alleged.

Rafizi also highlighted that the redefinition of investments by KWAP would allow the fund to invest in derivatives, which he states is a bad idea.

“The amendments will allow KWAP to buy derivatives. Any sound investments will stay far away from derivatives,” the Pandan MP added.

The government is introducing new amendments to the Retirement Fund Act 2007. The amendment bill tabled for its first reading yesterday allows the fund to invest in more financial instruments on a wider ambit.