Well, the big news today is that The FBI has opened an investigation into money-laundering allegations related to 1MDB, according to the WSJ. This follows the Swiss attorney general’s probe.
Meanwhile, ValueCap, which has been below the radar since 2008, has suddenly resurfaced. The government wants to give it RM20bn to prop up the stock market.
ValueCap is equally owned by Khazanah, Kumpulan Wang Persaraan (Diperbadankan) and PNB. It claims to have achieved an average return of more than 11 per cent on the funds it managed from 2003 to 2013 with its “equity portion of the fund consistently outperforming benchmark returns”. Presumably, that does not take into account the recent drop in the stock market.
At the end of 2013, ValueCap had just RM3.0bn in net current assets/shareholders funds. The question is, how is it going to raise the RM20bn it plans to use to prop up Bursa? By issuing more bonds? Who will have to stump out the money? The controversies plaguing the 1MDB bond issues are still fresh on our minds.
Rafizi is now trying to table a private members’ bill to get parliament to agree to separate the post of finance minister from the prime minister. About time too.