The Malaysian Insight

NAJIB Razak, appearing visibly angry during a heated exchange with Attorney-General Tommy Thomas at the Kuala Lumpur High Court today, vehemently denied that he did nothing to find out what had happened to SRC International’s loans in 2013.

The former prime minister was cross-examined by Thomas who pressed him on why he did not direct the then second finance minister Ahmad Husni Hanadzlah to head to Switzerland where SRC International kept its funds at Swiss-bank BSI, headquartered in Lugano.

The Swiss government later froze some RM3 billion over alleged money laundering offences.

Thomas: I put it to you that you did not want Husni to go to Switzerland because you did not want him to discover the truth.

Najib: No.

Thomas: I put it to you that you did not want Husni to discover your cover-up.

Najib: I disagree.

Thomas: Why would the government of Malaysia give two government guarantees totalling RM4 billion unless you pushed for it as prime minister and finance minister.

Najib: SRC was formed with an agreement with EPU (Economic Planning Unit) that it was for the benefit of the nation. It was to have the funds necessary, that was why the government agreed to approve the loan.

Thomas: I put it to you even your answer today is a cover-up.

Najib: That’s not true. I disagree.

Thomas then pointed out that SRC International has been made insolvent after obtaining further loans from the government to pay for the interest of its previous RM4 billion loan from KWAP.

Thomas: The extent and scope of your involvement, both as advisor and shareholder, you were very much instrumental in getting the loans. Weren’t you personally shocked at what happened at the RM4 billion?

Najib: We appointed SRC…

Thomas: I’m sorry, but SRC is not on trial here. You are. You need to answer the question.

Najib: Yes, I was shocked. But I instructed SRC to investigate it. What was I supposed to do?

Thomas then asked whether Najib summoned SRC International’s five directors – SRC International Sdn Bhd chairman Ismee Ismail, Suboh Md Yassin, Che Abdullah, 1MDB CEO Shahrol Azral Ibrahim Halmi and SRC International CEO Nik Faisal Ariff Kamil – to ask what happened to the RM4 billion.

Najib: I didn’t summon the directors but I’ve given instructions to the management to do something.

Thomas: I am putting it to you that you did not.

Najib: No.

Thomas: I put it to you that you did nothing on your part to investigate despite RM4 billion of taxpayers’ money being involved.

Najib: SRC was supposed to do it! It’s in black and white.

Thomas: I put it to you that the RM4 billion was totally misspent and dissipated.

Najib: I disagree.

Thomas: I put to you that the RM4 billion has totally disappeared.

Najib: No. We have to establish that the funds are in Switzerland and how much there was.

Thomas: I put to you that all the money has been spent. It had to be written off because it was misspent.

Najib: No, no. I disagree.

Thomas: I put it to you that KWAP had no choice whether to approve or disagree with the loan.

Najib: I disagree.

Thomas: I put it to you that it is not normal to rush the cabinet paper, with incomplete documentation. I put it to you that that is totally unusual.

Najib: I disagree

Thomas: I put it to you that the cabinet approved both government guarantees despite the scarcity of information in cabinet papers because of your chairmanship of the cabinet meetings and the fact that you hold two positions (that is prime minister and finance minister).  

Najib: No. I disagree.

Thomas: I put it to you that you arranged this whole scheme so that you can personally benefit.

Najib: No.

Thomas: You have been described as the emperor of SRC. I put it to you that you were acting as such.

Najib: I disagree.

Thomas: I conclude that these series of actions over the years were deliberate and premeditated and designed and planned as a corrupt act, of which you benefited personally.

Najib: No. I disagree.

Thomas concluded his cross-examination today. Further cross-examination will be carried out by ad hoc prosecutor V. Sithambaram, a seasoned criminal lawyer, when the trial resumes on Wednesday.

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.