Was releasing funds before a guarantee a common practice for KWAP?

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Releasing Funds Prior to Government Guarantee Was Not a Standard Practice for KWAP

A former official from the civil servants' pension fund KWAP testified that the fund had never encountered a situation where loan funds were released before a government guarantee was secured. This specific instance involved a RM2 billion loan to SRC International Sdn Bhd in 2012, where the Finance Ministry requested KWAP to disburse the funds first, with an undertaking to provide the guarantee within 10 days.
Finance Ministry's Request for Expedited Release

KWAP received a letter dated March 28, 2012, from the Finance Ministry, which requested the fund to consider releasing the second batch of RM2 billion to SRC International. This request was made despite the government guarantee for the loan not yet being formally received by KWAP. The ministry's letter indicated an undertaking to submit the official government guarantee within a maximum of 10 days.
Unprecedented Nature of the Transaction

Amirul Imran Ahmat, a former KWAP official, stated under oath that he had never encountered such a practice during his tenure. His testimony highlighted that the standard procedure for KWAP involved securing the government guarantee before the disbursement of loan funds. This particular transaction with SRC International in 2012 represented a deviation from established protocols.
Loan Processing Timeline for SRC International

The loan process for SRC International in 2012 was notably rapid. KWAP issued a letter of offer for the RM2 billion loan on March 23, 2012, followed by the signing of the loan agreement on March 27, 2012. Subsequently, on March 28, 2012, KWAP was informed that the RM2 billion sum had been released and transferred to SRC International's AmIslamic Bank account. This entire approval and disbursement process for the RM2 billion loan took approximately two weeks from the initial loan application dated March 13, 2012.

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Was releasing funds before a guarantee a common practice for KWAP?

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