Najib approved SRC’s application for RM3.95b loan to KWAP, court told

02 May 2019 / 21:40 H.

KUALA LUMPUR: The High Court here was told today that former prime minister Datuk Seri Najib Abdul Razak approved a loan application amounting to RM3.95 billion submitted by SRC International Sdn Bhd to Kumpulan Wang Persaraan Diperbadankan (KWAP) for use as revolving capital and unlimited general investment.

KWAP’s former assistant vice-president (Fixed Income Department) Amirul Imran Ahmat told this to the court when referring to a letter, dated June 3, 2011, and addressed to the KWAP chief executive officer.

He said the letter contained remarks “Bersetuju dengan cadangan ini” (Agree with this proposal) in Najib’s handwriting and also his (Najib) signature with the date June 5, 2011.

“Based on my understanding, the remarks meant that the prime minister agreed for KWAP to give a loan to SRC. I can recognise Datuk Seri Najib’s handwriting and signature because I was used to seeing them while working at KWAP,“ said Amirul Imran, who is the 29th prosecution witness.

He was testifying on the 12th day of the trial of Najib’s case for alleged misappropriation of SRC International Sdn Bhd funds amounting to RM42 million.

According to Amirul Imran, he received the letter dated June 3, 2011, from his department head, Ahmad Norhisham Hassan, who is now deceased.

He said the letter was a loan application by SRC and addressed to Najib, who was then prime minister and Finance Minister, to obtain a loan of RM3.95 billion from KWAP.

“The letter was signed by a SRC director by the name of Nik Faisal Ariff Kamil. SRC then was wholly-owned by 1Malaysia Development Berhad (1MDB), which is wholly owned by the Finance Minister Incorporated,“ he added.

Amirul Imran said that on June 16, 2011, he sent an email to Nik Faisal’s assistant, Noor Azlina Abu Bakar, to supply the necessary documents, such as 1MDB’s audited accounts for financial years since incorporation, latest available management accounts, company profile/details, 1MDB and SRC’s corporate profiles and 1MDB and SRC’s details of investment mandate and business plan/strategy.

On June 29, 2011, he received an email from Ahmad Norhisham and also from Nik Faisal to inform that the documents requested by KWAP would be submitted on June 30, 2011.

Questioned by deputy public prosecutor Datuk Mohd Ishak Yusoff during examination-in-chief, Amirul Imran, who resigned from KWAP in May 2014, said in 2011, KWAP approved a loan of RM2 billion to SRC, and another RM2 billion in 2012.

He said KWAP was allowed to give loans to the federal government or any state government, or authorities which the federal government had interests in and also companies, according to terms that benefit KWAP.

“Based on KWAP’s policy in processing the loan, borrowers have to submit their application to KWAP by enclosing all the supporting documents and working papers. The Fixed Income Department will study and evaluate all applications before they are tabled to the Investment Committee which is chaired by the CEO.

“After the Investment committee approves the investment proposal, a working paper on the investment will be prepared and then submitted to the KWAP Investment Panel for decision,“ he added.

Amirul Imran, who is now with SME Bank, said the terms of the loans depended on the capability of repayment based on the borrowers’ credit performance which would be evaluated by the Fixed Income Department.

The hearing before judge Mohd Nazlan Mohd Ghazali continues on Monday. — Bernama

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