The Malaysian Insight

NAJIB Razak disputed suggestions by Tommy Thomas that he had the power to influence the board and management of Retirement Fund Inc (KWAP) and SRC International.

The former prime minister said this when cross-examined by the attorney-general on the extent of his ability to manage KWAP, and to hire and fire senior management.

The Pekan MP was shown a letter dated June 3, 2011 from former SRC International CEO Nik Faisal Ariff Kamil applying for KWAP’s first loan of RM3.95 billion. The letter had Najib’s signature with the words “bersetuju” (agreed) on it. The loan was later reduced to RM2 billion.

Najib denied Thomas’ suggestion that KWAP’s investment panel perceived Najib’s approval as an instruction to approve the loan to SRC International.

Najib: I signed that and I agreed with the proposal, but that does not necessarily mean that the (KWAP) investment panel will follow my suggestion.

There is confidence that they have to make the right judgment. They realise they have a duty to look after the interests of the corporation.

In my experience, it is impossible for a prime minister to oversee the viability of any investment. It’s not the job of the prime minister in charge. A minister has to see the macro level, the performance, to ensure the project must be within the scope of management. In this case, it was the investment panel that decided the investment was viable or not.

Thomas: You must look at it from their vantage point. You had the power to hire and fire. They would have seen this as an instruction to follow.

Najib: I disagree. They cannot run from the law. They can disagree. If they had told me that it was not feasible, I would have listened.

Thomas puts it to Najib that KWAP had taken Najib’s approval of Nik Faisal’s proposal to allow the loan to be approved.

Najib: Why are you saying I approved? It is in the law, and the law states that the investment panel must approve it. Not me.

Tommy: If we were all following the law, we wouldn’t be here Datuk Seri.

Najib: Yes, but you are the attorney-general. You should know the law.

Najib later also disagreed with a suggestion that he appointed board members of SRC International.

Thomas: I put to you that they were your handpicked nominees. In fact there was never an example, in writing, that I have been able to see that the five of them, who ever disagreed with what you say.

Najib: I disagree. Totally.

Najib’s charges in the SRC International trial are linked to RM4 billion in loans issued to the entity in 2011 and 2012, of which he is accused of receiving RM42 million in 2014 and 2015.

The 66-year-old accused is represented by lead counsel Muhammad Shafee Abdullah. The trial, before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali, continues. – December 10, 2019.