MoF asked for repayment of RM1.199b shareholder capital from Khazanah in 2017

PETALING JAYA: Khazanah Nasional Bhd today acknowledged that it had paid RM1.199 billion in shareholder capital to Ministry of Finance (MoF) in August 11, 2017, but explained that it has no control over the use of the funds by the Ministry.
In a short statement issued earlier, the sovereign wealth fund stated that it had made a close to RM1.2 billion payment to the MoF for a RM3 billion Redeemable Cumulative Convertible Preference Shares (RCCPS) issued by Khazanah to MoF on March 7, 2011.
It explained that the RCCPS is essentially capital injected, that MOF as its 100% shareholder, has a right to call back (i.e.redeem) at any time.
The first redemption was done on March 14, 2014, for RM1.8 billion of the RM3.0 billion issued. On August 11, 2017, MOF redeemed a further RM1.199 billion of the remaining RM1.2 billion RCCPS.
"It is also relevant to note that Khazanah has no control over the utilisation of the funds once the RCCPS has been redeemed," Khazanah said.
The statement comes after a foreign newswire reported that the previous government under Prime Minister Datuk Seri Najib Abdul Razak used money raised from a RM1.2 billion deal with Khazanah to pay for some of the liabilities of state fund 1Malaysia Development Berhad (1MDB) to International Petroleum Investment Company (IPIC).
Read the earlier report from (Reuters)
http://www.thesundaily.my/news/2018/05/24/najib-used-money-raised-khazanah-pay-1mdb-debts-sources