The Malaysian Insight

NAJIB Razak today testified that he was not fully aware of SRC International Sdn Bhd’s operations after approving government guarantees for RM4 billion in loans from Retirement Fund Inc (KWAP) in 2011 and 2012.

The former prime minister and finance minister told the Kuala Lumpur High Court that he was involved only in the entity’s policy direction.

During cross-examination by Attorney-General Tommy Thomas, Najib was asked how much he knew of SRC International’s operations when he, along with the then cabinet, approved the second government guarantee for KWAP’s RM2 billion loan in February 8, 2012.

Najib said he did not know that the first RM2 billion loan was transferred to Falcon Private Bank in Switzerland and Julius Baer Bank in Hong Kong.

The first government guarantee was approved at a cabinet meeting in August 17, 2011, the court heard.

Thomas: By the time we reached the second government guarantee, it would have been about six months since the disbursement of the first loan. Surely at this stage, when you mention a government guarantee for a loan for the second time, wouldn’t your first question be, “What happened to the RM2 billion in six months?”. Did you ask that question?

Najib: Yes, I did ask that question.

Thomas: And what did they say?

Najib: It was set aside for other investments. They had plans for immediate investments. That was what I was told.

Thomas: Was it cash in bank?

Najib: Yes.

Thomas: Did it remain cash in bank?

Najib: I was not sure, but I asked them, and they said it was for investment purposes. I didn’t ask where it was. They just said it was for immediate investment.

Thomas: Did you ask whether the cash was in Malaysia?

Najib: I didn’t ask further questions.

Thomas: I put it to you that you acted wrongly.

Najib: No, I disagree.

Thomas: Was there any reference as to what happened to the RM2 billion that was disbursed in the first loan? Was the cabinet told of that?

Najib: Not specifically.

Earlier, Thomas pointed out that SRC International’s first RM2 billion loan was disbursed on August 29, 2011, just 12 days after the cabinet approved the government guarantee.

He asked Najib if the speed at which the disbursement was made had to do with the former prime minister’s personal involvement in the matter.

Najib disagreed. He also said he did not know that the monies were moved to Hong Kong soon after.

Thomas: Are you saying that shortly after the government guarantee was given, you were no longer interested in matters related to SRC International?

Najib: These are operational matters.

Thomas: Are you saying that you were not interested in following up on the RM2 billion disbursed to SRC International, and what SRC International did with the money?

Najib: No. It was because they were operational matters. That is the job of the board and management. I was not aware of operational matters. I was involved in policy direction.

Thomas: I put it to you that you were closely following the disbursement of the monies from KWAP to SRC International, and later, from SRC International outwards.

Najib: I disagree.

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 is represented by a team of lawyers led by Muhammad Shafee Abdullah.

The trial before judge Mohd Nazlan Mohd Ghazali continues. – December 11, 2019.