Private Finance Initiative: Another shocking scam unravelled!

[superadmin]

When it was reported that Pembinaan PFI Sdn Bhd had racked up debts close to RM50bn in 2018, this issue had the makings of a major scandal.

Pembinaan PFI, a government-linked company, had reportedly been created to implement a policy called Private Finance Initiative (PFI), introduced to allow private enterprises securing public contracts to first shoulder the costs to complete these projects.

However, two pension funds, the Employees Provident Fund (EPF) and Retired Fund Incorporated (KWAP), were used to obtain loans totalling RM30bn to implement PFI projects.

The collateral for these loans was a huge number of government land parcels that had been leased by a government agency, the Federal Lands Commissioner, to Pembinaan PFI for a mere RM10 – though later increased to RM5.7bn, which were then subleased to the government for a massive RM29bn!

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