KUALA LUMPUR, Feb 4 — Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has the expertise and authority to seek improved terms for Genting Hong Kong’s unsecured loans with three Malaysian banks, Opposition leader Datuk Seri Anwar Ibrahim said today.

Anwar said Tengku Zafrul had been the head of investment banking at Maybank when it issued the loan, before joining CIMB that also lent to Genting Hong Kong.

"He (Zafrul) has served as finance minister for almost two years. He has extensive expertise in relation to the deal, and had ample time to make amendments capable of ensuring benefits to bank users, but that was not the case.

"In short, there is only one person who can negotiate a better agreement with GHK on behalf of Malaysians, namely the current minister of finance. It turns out he has failed,” said Anwar in a statement today.

Last month, Anwar demanded Tengku Zafrul explain how GHK — who recently filed for bankruptcy — managed to borrow US$600 million (RM2.5 billion) without collateral from Maybank, CIMB and RHB.

Tengku Zafrul had said it is not uncommon for financial institutions to take risks and give such loans.

Anwar today accused the minister of failing to provide a response that matched the gravity of the situation.

"In the issue of unsecured loans to GHK, the losses incurred by Maybank, CIMB and RHB will also be ‘borne’ by Malaysians.

"Malaysia has long been embroiled in various financial scandals; from the Bumiputera Finance scandal to 1MDB where billions of ringgit were lost due to abuse of power, corruption and the lack of principles of transparency and accountability by responsible bodies,” he said.

On January 23, Singapore’s Straits Times reported that a senior banker from one of the three institutions acknowledged that GHK’s troubles were worrisome after it announced this week that it had filed to wind up the company after it failed to secure financial lifelines for its businesses.

The report said that the three Malaysian banks — who all have regional presence in South-east Asia — are well capitalised, but a hit from Genting Hong Kong is set to have serious consequences.