SRC International... another 1MDB?

From the Edge:

Prime Minister Datuk Seri Najib Razak said SRC International Sdn Bhd, a wholly-owned unit of the Ministry of Finance (MoF), has invested RM3.81 billion of the RM4 billion borrowed from Kumpulan Wang Persaraan (Diperbadankan) (KWAP) in overseas assets. Najib said this includes assets in countries like Indonesia and Mongolia.

“The total investment for SRC International is RM4.1 billion, of which RM3.81 billion has been invested in overseas assets related to natural resources and coal in countries like Indonesia and Mongolia,” he said in his written reply in Parliament to questions from PKR secretary-general Rafizi Ramli. Reporters obtained Najib’s reply yesterday.

Every time PM Najib uses the word "Assets" I'm a little frightened.  Assets are just something a person or company buys and may or may not have its stated value.  If there is strong liquid market, it has better transparency in value, otherwise the assets probably will fall in value.  It may also fall in value if cash flows aren't there.

Although not on the scale of 1MDB, the SRC International company seems to have borrowed money from KWAP, our country's pension fund to finance investments in natural resource countries like coal that have surely declined in value by now.

This brings me back to a post I wrote recently questioning whether our money is really safe.  The issue is when it comes to the government, given their track record, it's not out of question that they would use the people's money to invest in things like SRC International.  

The MOF shouldn't have any authority to borrow money from the country's pension and EPF fund. Nor should the retirement funds let the government take money.  Mixing people's hard earned retirement money with government hanky panky just really makes me want to hurl.