KUALA LUMPUR: A former Finance Ministry senior officer told the High Court here yesterday that SRC International Sdn Bhd merely gave a one paragraph justification to obtain the government’s guarantee for its first loan amounting to RM2 billion in 2011.
The former Finance Ministry loan management, financial market and actuary division secretary, Datuk Maliami Hamad, 65, said the justification stated was not sufficient for it to be tabled to the cabinet as the information provided was limited.
The 43rd witness said when cross-examined by deputy public prosecutor Datuk Suhaimi Ibrahim on the 33rd day of former Prime Minister Datuk Seri Najib Tun Razak’s trial on three counts of criminal breach of trust, one count of abusing his position and three counts of money laundering involving SRC International Sdn Bhd funds amounting to RM42 million.
Suhaimi: Do you have the opportunity to review all the requirements for the government’s guarantee, in line with whatever that was wanted by SRC International via Nik Faisal Ariff Kamil at that time? Maliami: At that time, the information given to me was limited.
The letter (from SRC International seeking government guarantee) only had two subjects, namely the loan conditions and loan justification which is only one paragraph.
This is insufficient to be submitted to the Cabinet.
The justification stated that the purpose of the government guarantee was to ensure the continuous supply of power in the long run for consumption in the country and to generate the economy of the country.
Replying to another question by Suhaimi on why he signed the letter from the Finance Ministry to Retirement Fund Incorporated (KWAP) to apply for the loan for SRC before the government’s guarantee was finalised, the witness said he was merely following orders.
Besides, the matter is the first and it is not the normal practice of the ministry as the government’s guarantee has not been issued.
Suhaimi: So why did you sign? Maliami: As the officer responsible, I have to follow the order of the Treasury secretary-general at that time as he said the Prime Minister had asked for the withdrawal to be expedited.
Suhaimi: Who is the Treasury secretary-general then?
Maliami: Tan Sri Dr Wan Abdul Aziz Wan Abdullah When asked why was the first RM2 billion loan specified only for natural resources sector financing, the witness said his office took into consideration the core business of SRC which is natural resources apart from ensuring that the money acquired would be spent according to what the Cabinet had authorised.
Nonetheless, in a meeting on April 12 2012 at the Finance Ministry which was attended by SRC chief executive officer, Nik Faisal Ariff Kamil, KWAP and officers from Finance Ministry, Maliami said Nik Faisal urged the words ‘revolving capital’ to be included to amend the purpose for the use of the loan.
According to Maliami, the Cabinet later approved the amendment.
The hearing before judge Mohd Nazlan Mohd Ghazali continues today. — Bernama