KUALA LUMPUR: The trial of former prime minister Datuk Seri Najib Tun Razak who is facing seven charges involving SRC International Sdn Bhd’s funds totalling RM42 million has seen more revelations on how SRC has secured two loans of RM4 billion in 2011 and 2012 from the Retirement Fund Incorporated (KWAP) despite not meeting the loan requirements.
These are the quick recap of witnesses’ testimonies during the trial before High Court Judge Mohd Nazlan Mohd Ghazali this week.
Day 19 (May 28): Former KWAP chief executive officer (CEO) Datuk Azian Mohd Noh testified that the application letter by SRC International Sdn Bhd for a RM3.95 billion loan did not meet the procedural requirement policy of KWAP.
He said this was because any loan application has to be addressed to KWAP while the loan application by SRC in a letter, dated June 3, 2011, signed by SRC International director Nik Faisal Ariff Kamil, was addressed to the then prime minister Datuk Seri Najib Tun Razak.
Reading from her witness statement, Azian said she received the original letter on SRC’s application from Najib’s special officer, the late Datuk Azlin Alias in June 2011.
Azian said she was told by Azlin that Najib had agreed to the application proposal from SRC and Azlin pointed out to her some notes on the letter which he said were written by Najib himself.
“The letter I received was a loan application letter prepared by SRC and addressed to Datuk Seri Najib as Prime Minister and Finance Minister of Malaysia to get a KWAP loan of RM3.95 billion for the purpose of revolving capital and general investment without limits,” she said.
Azian, who is now retired, said on the letter dated June 3, 2011, were notes written by Najib and his signature which were addressed to her as the KWAP CEO stating, “agree with this proposal” and dated June 5, 2011.
“To my understanding, the note ‘agree with this proposal’ means the prime minister agreed that KWAP gives loan to SRC. I received the letter and the following morning I went to see Tan Sri Dr Wan Abdul Aziz Wan Abdullah, the KWAP chairman, and informed him about the letter,” she said.
“Tan Sri Dr Wan also said he was aware of the matter because he had been informed by Datuk Seri Najib earlier. I was then directed by Tan Sri Dr Wan that KWAP could study the application and submit it for consideration and decision by the KWAP Investment Panel,” she said.
The 38th prosecution witness also said an evaluation by KWAP Fixed Income Department decided that KWAP could provide a loan of only RM1 billion after taking into consideration the high payment risk, national risk, industry risk and over-concentration risk associated with SRC’s loan application for RM3.95 billion.
She said a member of the investment panel suggested that Najib be informed that KWAP proposed to give only a RM1 billion loan to SRC.
“Not long after that Tan Sri Dr Wan and I went to see Datuk Seri Najib at the Prime Minister’s Office. We told him of the KWAP Investment Panel’s decision to approve a loan of only RM1 billion. However, I could not remember the date of our meeting,” she said.
She said KWAP Special Investment Panel Paper was prepared for consideration for approving a RM2 billion loan to SRC for the purpose of working capital and general investments.
The loan was approved on Aug 23, 2011.
Azian told the High Court that she had met with Azlin after she was contacted by the latter’s office for them to meet at the lobby of the hotel in Kuala Lumpur Sentral (KL Sentral) here at night.
During examination-in-chief by Deputy Public Prosecutor Datuk Ishak Mohd Yusoff, the witness said she knew Azlin for two years because she had dealt with him on work matters but that was the first time they met outside office hours.
She admitted that it was the first time she met with Azlin at night for about 45 minutes.
Ihsan Perdana managing director Datuk Dr Shamsul Anwar Sulaiman, who is the 37th witness, testified that Najib appeared “shocked and upset” upon learning that someone had transferred money into his private accounts when he met Najib at his (Najib’s) residence in Langgak Duta here after he (Dr Shamsul Anwar) was remanded by the Malaysian Anti-Corruption Commission (MACC) in 2015.
Dr Shamsul Anwar Sulaiman said Najib, however, did not instruct him to lodge a report either to the police or the MACC pertaining to the fund transfer transactions.
“He was shocked and upset…he said somebody put the money in his accounts…and that he did not even know about the transactions, (and he wondered) why the transactions (were done) through my company (Ihsan Perdana),” he said.
To Najib’s lawyer Tan Sri Muhammad Shafee Abdullah question on whether Najib’s action was genuine or was he just acting, Dr Shamsul Anwar replied: “He was genuine”.
Day 20 (May 29): Continuing her testimony, former KWAP CEO Datuk Azian Mohd Noh said that the RM4 billion loan to SRC International Sdn Bhd was among the highest approved by the statutory body.
She also told the court that she was appointed as KWAP’s first CEO and an ex-officio member of its board of directors in March 2007 and retired on March 17, 2013.
“Based on my experience while serving in KWAP, the two loans to SRC totalling RM4 billion were among the highest amounts ever approved by KWAP,” she said.
Azian, who is a member of Danajamin Nasional Berhad board of directors, said KWAP also received from the Finance Ministry, a letter dated March 28, 2012, agreeing to furnish a 10-year guarantee for the second RM2 billion loan to SRC International Sdn Bhd, pursuant to a Cabinet endorsement on Feb 8, 2012.
She also confirmed that there was a letter from the finance ministry dated May 18, 2012, to change the purpose of the loan given to SRC.
“The letter stated that the loan was for investment activities in natural resources and revolving fund only and not for general investment.
The letter was also based on the Cabinet’s decision on Feb 8, 2012,” she said.
Azian said using the loan from KWAP for purposes other than investment in natural resources and revolving fund would be a breach of the terms of the agreement and constituted an event of default.
“Should it happen and KWAP finds out, it can terminate the agreement and demand full repayment and interest on the outstanding balance,” she said.
The hearing continues on June 10 with Azian to continue her testimony. — Bernama