KUALA LUMPUR: The High Court here was told today that Ihsan Perdana Sdn Bhd (IPSB) received grants totalling RM40 million a year to organise corporate social responsibility (CSR) programmes for 1Malaysia Development Berhad (1MDB).
IPSB managing director Datuk Dr Shamsul Anwar Sulaiman said the grants were from two foundations, namely Yayasan 1MDB (Y1MDB) and Yayasan Rakyat 1Malaysia (YR1M).
“IPSB is a company that conceptualises CSR implementation and is not profit-oriented. IPSB’s funds are obtained from Y1MDB and YR1M.
“Since IPSB’s establishment, Y1MDB gave fixed grants of RM20 million a year and YR1M RM20 million a year, since 2011, overall IPSB received RM40 million every year,“ said Shamsul Anwar, who was 1MDB’s executive director for its CSR division on October 2010 and July 2011.
Shamsul Anwar, who was appointed IPSB managing director on July 25, 2011, said this during examination-in-chief by deputy public prosecutor Saifuddin Hashim Musaimi on the 18th day of former prime minister Datuk Seri Najib Abdul Razak’s trial for alleged misappropriation of SRC International Sdn Bhd funds totalling RM42 million.
Also appointed as a director of IPSB was Datuk Abdul Aziz Ismail, who is also its Finance Director.
Shamsul Anwar, who is the 37th prosecution witness, said the grants for IPSB was for the company to carry out CSR programmes, with RM5 million a year spent for operation costs of IPSB.
“Y1MDB provided RM20 million a year to organise CSR programmes in Malay areas won by Umno or Barisan Nasional (BN), while YR1M gave RM20 million annually to organise CSR programmes in Chinese and Indian areas won by Umno or BN,“ he added.
He said that although the CSR programmes were planned by IPSB, the target groups were determined by the BN MP of Umno divisional leader of a programme, and IPSB also prepared the report on the programme implementation every year.
He also told the court that IPSB only had three accounts at Affin Bank branch at The Curve in Damansara.
Earlier, Shamsul Anwar had told the court that IPSB was established after the 1MDB board of directors, comprising Najib, Tan Sri Lodin Wok Kamaruddin and Datuk Shahrol Azral proposed for a setting up of a private limited company to take over CSR work from 1MDB to ensure well-planned and more organised programmes.
“The proposal was made after the 1MDB board of directors found there was conflict of interest, that it was not appropriate for 1MDB to carry out CSR work organised under 1MDB.
“I don’t know why Y1MDB did not continue to carry out the CSR work directly. As far as I know, Y1MDB can do the CSR job directly, but Y1MDB did not have the capacity to do so,“ he added.
Shamsul Anwar said he then looked for a shelf company to carry out the CSR jobs and was recommended Gem Horizon Sdn Bhd by a company secretary before he was ordered to relinquish his post at 1MDB to set up a new company.
He said Gem Horizon’s name was then changed to IPSB because the original name was not suitable for the company to carry out CSR work.
Shamsul Anwar said the objective of establishing IPSB was for it to act as a contractor to carry out CSR jobs as instructed by Y1MDB and YR1M.
He told the court that he and Abdul Aziz held IPSB shares of RM1 each from July 25, 2011.
Najib, 66, is facing three counts of criminal breach of trust, one charge of power abuse and three counts of money laundering involving SRC International Sdn Bhd’s funds totalling RM42 million.
The hearing before judge Mohd Nazlan Mohd Ghazali continues. — Bernama