Why did banks allegedly release RM280 million despite MAPS scandal knowledge?

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Banks Allegedly Released Remaining RM280 Million Loan Despite Awareness of MAPS Scandal

Banks are accused of releasing the remaining RM280 million of a loan for Movie Animation Park Studios (MAPS) despite having knowledge of corruption and mismanagement within the project since 2015. New evidence from court documents suggests that financial institutions were aware that the Syndicated Term Loan (STL) was not exclusively used for the construction of MAPS, prompting accusations that they chose a path of least resistance rather than halting further disbursements.
Awareness of Misappropriation

Court documents reportedly indicate that banks were aware that the Syndicated Term Loan was not being wholly and exclusively utilised for the construction of MAPS. This knowledge, allegedly present as early as 2015, pertained to financial leakages and corrupt practices associated with the project. Despite this awareness, the decision was made to proceed with the release of the remaining loan funds.
Failure to Halt Drawdowns

Perak state lawmaker Chong Zhemin asserts that banks should have intervened and stopped the remaining loan drawdown once they became aware of the potential fraud and mismanagement. Instead of taking action based on this information, the banks are accused of opting for an easier route by continuing to release the balance of the STL. This decision was made despite clear indications of leakages and fraudulent activities in the construction process.
Social Responsibility Ignored

Chong highlighted that MAPS was a state government project and argued that banks should have exercised social responsibility by reporting the issues to prevent the scandal from escalating. The focus, it is alleged, was primarily on the profits derived from interest payments and the protection of the banks' own interests, rather than addressing the broader implications of the project's mismanagement.
Lack of Action by Stakeholders

The court documents allegedly reveal that not only the banks but also the Perak Corporation Berhad (PCB) administration and the state administration were aware of the financial leakages and corrupt practices at MAPS as early as 2015. However, no decisive actions were reportedly taken at that time to halt the worsening MAPS scandal, contributing to its eventual downfall.

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Why did banks allegedly release RM280 million despite MAPS scandal knowledge?

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