Raziah Mahmud’s RM880,000,000.000 Bank Loan!

We can reveal that Malaysia’s RHB Bank has just lent Raziah Mahmud, the Chief Minister’s sister and her second husband, Robert Geneid, a whopping RM 880 million ringgit!

This breath-taking hand-out (the equivalent of US$ 285 million) was discovered by Sarawak Report in the public records of  Malaysia’s Companies Commission.  It was registered last June as a charge against one of the couple’s privately owned companies, Kumpulan Construction.

Kumpulan Construction is registered as having RM1 million share capital, 5% owned by Zaleha Binti Mahmud Hajjah (Taib’s youngest sister) and the rest by Mastim Sdn Bhd, which in turn is jointly owned by Raziah and Robert, an Australian national. 

The vast size of the loan, particularly in relation to the relatively modest assets recently posted by Kumpulan Construction, raises a number of questions for the couple and the bank , as well as the Chief Minister of Sarawak, who has repeatedly abused his position by granting his sister’s companies lucrative state-funded projects which they are not equiped to carry out.

On what basis was such a loan granted ?

Insiders  confirm that Kumpulan Construction ”never did an honest day’s work on any of the contracts they secured” and that “everything is sub-contracted out to others, especially to Hock Seng Lee (HSL)”.

Therefore, Sarawak Report questions on what basis RHB, a public bank owned by Malaysia’s public service pension fund EPF (Employees Provident Fund), advanced a loan of such magnitude to this medium-sized private company?  Indeed, could any other equivalent firm leverage what amounts to nearly a sixtieth of the RHB’s entire loan capital? 

Despite handling so many public projects, Kumpulan Construction supplies no public information (can’t they afford a website?).  However, from the limited details of its accounts provided through the Companies Commission, we know that the company made a turnover of RM43 million last year, registering an after tax profit of just under RM4 million.  Also, its reserve capital is  just over RM4 million, plus it has a share capital of RM1 million.  Given the company has over-all liabilities of around RM 42 million, matched by its over-all assets, the loan seems inexplicable.