KUALA LUMPUR: A government backbencher today urged the government to provide clarification over the total loss of Axiata Group Bhd's (Axiata) investment in Nepal.
The call was made by Hassan Abdul Karim (PH-Pasir Gudang) who said the investment incurred a loss of RM6.3 billion, a huge scale when compared to the debt of 1Malaysian Development Bhd (1MDB).
"This involves public funds and I request clarification on the issue from the ministry. I was made aware that Axiata's subsidiary overseas, including in Indonesia, also incurred significant losses.
"We are being prudent (in our spending) domestically, (where) we cut subsidies, we restructure the pension system.
"However, our government-linked corporations (GLCs) which are publicly funded, lose money abroad due to mismanagement or whatever reason, and this is not worth it," he said during the debate session of the Supply (Reallocation of Appropriated Expenditure) Bill 2024 in the Dewan Rakyat, today.
He also urged the government to address the issue if GLCs have recorded billions in losses.
"We hope our GLCs perform like Employee Provident Fund (EPF), which makes profits."
Last December, it was reported that Axiata had entered into an unconditional sale and purchase agreement with Spectrlite UK Ltd to dispose of Reynolds Holdings Ltd, which holds an 80 per cent stake in Ncell Axiata Ltd, as part of its decision to exit the Nepal market after experiencing seven turbulent years.
The telecommunications company stated that the disposal comprises a fixed payment of US$50 million along with a conditional offer for Axiata to receive a share of Ncell's future distributions, contingent upon the company's future business performance, net distributions until 2029 and any extraordinary gains during this period.
Axiata reportedly mentioned that it took various factors into account before opting to withdraw, including the imposition of a US$434 million tax liability by the Nepalese government on the company.