The Finance Ministry did not fork out any cash to take over SRC International Sdn Bhd, formerly a subsidiary of 1MDB, in February 2012.

The ministry said the mechanism of the ownership transfer to Finance Ministry (Incorporated) was done through 'dividend in specie' by 1MDB, which in turn pays dividend amounting to RM1 to the ministry in the form of 100 percent equity shares in the company.

Dividend-in-specie is a term that describes the distribution of an asset in its present form, rather than selling it and distributing the cash.

In-specie distribution is made when cash is not readily available, or allocating the physical asset is the better alternative.

SRC International took RM4 billion loan

SRC International came into spotlight after it took an RM4 billion loan and allocated part of the fund to the controversial Gobi Coal & Energy Ltd, a joint-venture project in Mongolia.

This is stated in a written parliamentary reply, issued on Monday, to Abd Aziz Sheikh Fadzir (BN-Kulim Bandar Baharu), who wanted the government to elaborate on the details of the takeover, as well as SRC International's debts.

However, the Finance Ministry said SRC International would only reveal its debts and liabilities after the financial statement for the year-ending March 31, 2015, is audited.

DAP’s Petaling Jaya Utara MP Tony Pua and PKR’s Pandan MP Rafizi Ramli revealed later that the maximum amount SCR International invested was only RM49.6 million, out of the RM4 billion loan taken from Retirement Fund Incorporated (KWAP).

Pua and Rafizi said this when questioning the whereabouts of the RM3.81 billion loan balance that has been unaccounted for.

Pua was also reported as saying that SRC registered a loss of RM164.4 million, with its total liabilities amounting to RM4.34 billion.