The Malaysian Insight

FORMER prime minister Najib Razak repeatedly denied he was in total control of SRC International Sdn Bhd and had the power to influence Retirement Fund Inc (KWAP) for RM4 billion in loans to the entity, the high court heard last week.

Although SRC International received RM4 billion in loans from KWAP in 2011 and 2012 to invest in the energy sector, the entity failed to record any proper financial gains.

In a heated exchange with Attorney-General Tommy Thomas last week, Najib denied that he did nothing to discover what happened to the RM4 billion.

During cross-examination at the Kuala Lumpur High Court, Najib was questioned why he did not direct  then second finance minister Ahmad Husni Hanadzlah to head to Switzerland to investigate SRC International’s funds at Swiss-bank BSI, headquartered in Lugano.

Najib denied Thomas’ suggestion that he did not want Ahmad Husni to discover there was a cover-up.

He also denied knowledge of SRC International’s operations after he, along with the then cabinet, approved a second government guarantee for KWAP’s RM2 billion loan on February 8, 2012.

Najib said he did not know that the first RM2 billion loan, approved at a cabinet meeting in August 17, 2011, was transferred to Falcon Private Bank in Switzerland and Julius Baer Bank in Hong Kong.

Thomas had suggested that proposals for the first loan, which was initially suggested at RM3.95 billion, were made before SRC International directors were formally appointed on August 1, 2011.

He submitted to the court seven documents on the appointments of the directors, to which Najib responded that the proposal must have been forwarded by former 1Malaysia Development Berhad (1MDB) CEO Shahrol Azral Ibrahim Halmi.

Najib then denied that major decisions were made before the board was formed.

SRC International was a subsidiary of 1MDB, before ownership was transferred to the Minister of Finance (MoF) Inc in early 2012.

Najib also denied that his signature with the words “bersetuju” (agreed) on 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, amounted to a directive to KWAP.

Sacking of Muhyiddin, credit card spending

Najib said he was acting within his powers when he removed former deputy prime minister Muhyiddin Yassin and rural and regional development minister Mohd Shafie Apdal from his cabinet in 2015.

“I never sacked anyone for disagreeing with me, I sacked them for making statements outside (cabinet meetings) or for failing their ministerial responsibilities. I take offence at that,” said Najib.

Muhyiddin and Shafie were dropped from the cabinet during a mid-term reshuffle on July 28, 2015.

Muhyiddin is now president of Bersatu, a component party of the Pakatan Harapan (PH) coalition, while Shafie leads Sabah-based Warisan, a PH ally.

Najib also defended RM466,330.11 gift purchased on his credit card at a Chanel store in Honolulu, in the US on December 22, 2014, saying it was a birthday gift for his wife, Rosmah Mansor.

He defended another purchase of jewellery amounting to RM3.3 million made on August 8, 2014, at jeweller De Grisogono in Italy, saying they were gifts for the wife of then Qatari prime minister to improve diplomatic ties between the two countries.

On Monday, when he concluded reading his 243-page witness statement, Najib said he did not lodge a police report in 2015 regarding irregularities in his AmBank accounts as he did not want to be seen to be intervening in ongoing investigations at the time.

He cited a press statement by then attorney-general Mohamed Apandi Ali in 2016, which absolved him of any wrongdoing.

After the prosecution disputed the veracity of the press statement, presiding judge Mohd Nazlan Mohd Ghazali allowed Najib’s lawyers to call Apandi as the second defence witness.

Najib is represented by a dozen lawyers led by Muhammad Shafee Abdullah. 

He faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power.

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

He faces up to 20 years imprisonment, if convicted. – December 15, 2019.