KUALA LUMPUR: The High Court was told today that SRC International Sdn Bhd received a grant of RM20 million from the Malaysian government as startup capital.
Former deputy director-general, Economic Planning Unit (EPU), Prime Minister’s Department, Datuk Dr Kamariah Noruddin said prior to that, government-owned company 1Malaysia Development Berhad (1MDB) had applied for an allocation of RM3 billion to set up SRC International.
She said SRC International was set up to maintain a strategic hold on the country’s natural resources, such as coal, uranium, iron, aluminium,oil and gas,
The 28th prosecution witness was testifying on the 12th day of the trial of former Prime Minister Datuk Seri Najib Abdul Razak’s case for alleged misappropriation of SRC International Sdn Bhd funds amounting to RM42 million.
Mohd Ashrof: Who made the application?
Kamariah: Application was made by 1MDB to the Finance Ministry and the Prime Minister on Aug 24, 2010, which was signed by former 1MDB chief executive officer Datuk Shahrul Ibrahim Halmi and submitted to Najib.
Mohd Asrof: The application was for grant or loan?
Kamariah : Grant
On the action taken after that, Kamariah said she was instructed by then director-general Datuk Noriah Ahmad to make comments for purpose of evaluating the application.
“Datuk Seri Najib then issued instructions to (then) Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop to consider the application and prepare comments,“ she added.
Mohd Asrof: Any comments made?
Kamariah: Yes, there was. Briefly, the comment supported 1MDB’s proposal to establish SRC International Sdn Bhd for production of coal and uranium.
However, she said, the application for the RM3 billion grant was not supported, but the party concerned agreed to approve RM20 million as startup capital.
She said the approval for the RM20 million fund was basically to set up a company and the application for RM3 billion was not approved because oil and gas resources were being handled by PETRONAS.
“Coal at that time was handled by Tenaga Nasional Berhad (TNB), which imports 80% of the resource from Indonesia, while iron and aluminium by private companies,“ she added.
“Nor Mohamed then signed a memo and supported the allocation through a letter dated Oct 12, before it was sent to the Prime Minister’s Office and approved by Datuk Seri Najib Tun Razak on Oct 15, 2010,“ she added.
Najib, 66, is charged with three counts of criminal breach of trust, one charge of abusing his position and three counts of money laundering involving SRC International Sdn Bhd funds amounting to RM42 million.
The case is being heard before judge Mohd Nazlan Mohd Ghazali. — Bernama
