Anwar Why Did Govt Linked Banks Lend Billions To Gambling Firm

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PKR president Anwar Ibrahim has urged the government to explain why three government-linked banks provided RM2.51 billion in unsecured loans to Genting Hong Kong Ltd.
"Although the company is incorporated in Hong Kong, the owners are Malaysians who should have at least provided a personal guarantee or put up collateral," said Anwar in a statement today.
According to Singapore's Straits Times, three banks - Malayan Banking Bhd (Maybank), CIMB Group Bhd and RHB Bank Bhd - had a combined exposure of US$600 million in Genting Hong Kong.
Genting Hong Kong filed for bankruptcy on Jan 19. Two days later, its chairperson Lim Kok Thay stepped down.
The company owns three cruise lines (Dream, Star and Crystal), Resorts World Manila and several shipyards.
The Covid-19 pandemic crippled the global tourism industry and with it, Genting Hong Kong's operations.
Anwar, a former finance minister, said the government had large stakes in all of the three banks involved.
These interests are held through Permodalan Nasional Berhad (PNB), Khazanah Nasional Bhd and the Employees Provident Fund (EPF).
In view of this, Anwar urged Finance Minister Tengku Zafrul Abdul Aziz to explain why the banks were allowed to provide an unsecured loan to Genting Hong Kong.
"The finance minister should also explain how the RM2.51 billion is to be recovered.
"An explanation is necessary to avoid another Bumiputra Malaysia Finance (BMF) scandal," he said.
The BMF scandal broke in 1983, also involving large loans to a Hong Kong-based company.
The government eventually had to bail out Bank Bumiputra Malaysia Bhd (BBMB) to the tune of billions. - Mkini

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