SRC only submitted two-page letter for RM3.95b loan from KWAP: Witness

02 May 2019 / 23:41 H.

KUALA LUMPUR: The High Court was told today that SRC International Sdn Bhd (SRC) only submitted a two-page application letter to Kumpulan Wang Persaraan Diperbadankan (KWAP) for loan of RM3.95 billion.

SME Bank vice-president (Fixed Income) Amirul Imran Ahmat, 39, said the letter, dated June 3, 2011 and signed by SRC director Nik Faisal Ariff Kamil, sought the loan for use as working capital and general investments.

He said the letter was addressed to Datuk Seri Najib Abdul Razak, who was then Prime Minister and Finance Minister.

Amirul Iman, who is the 29th prosecution witness, said this during examination-in-chief by the prosecution, conducted by deputy public prosecutor Datuk Ishak Mohd Yusoff.

Ishak: Is it normal for you to see an application letter to apply for loan from KWAP with only two pages?

Amirul Imran: There have been, but not normal.

The witness, who was then assistant vice-president at KWAP’s Fixed Income Department, said he received the letter in June 2011 from his department head, Ahmad Norhisham Hassan, who is now deceased.

“Normally, for loan applications, many documents are required, but in this case, no (supporting) documents were received by KWAP, but the KWAP Investment Panel still sat to decide whether to approve or not a RM1 billion loan to SRC as working capital and general investment,“ he added.

Following which, Amirul Imran said he sent an email to Nik Faisal Ariff on June 29, 2011, to request for the supporting documents, which included from 1Malaysia Development Berhad (1MDB), as guarantor, company profile/details, 1MDB and SRC’s corporate profiles and 1MDB and SRC’s details of investment mandate and business plan/strategy.

He said on July 1, 2011, he received an email from Nik Faisal Ariff stating that the company was not able to produce the documents as prior approval had to be obtained from the chairman of the company’s board of directors and Najib, as the prime minister.

On the same day, he said Ahmad Norhisham instructed him to prepare a proposal paper for approval by the Investment Panel for loan of only RM1 billion to SRC, but the decision was deferred.

To another question from Ishak, Amirul Imran said on July 19, 2011, KWAP Special investments Panel and chief executive officer Datuk Azian Mohd Noh approved a loan of RM2 billion to SRC because the company was wholly-owned by 1MDB and also based on government guarantee.

“I saw the Letter of Guarantee Relating To The Islamic Term Financing Facility of RM2 billion Granted to SRC International Sdn Bhd, dated Aug 26, 2011, which is a guarantee letter by the Malaysian government signed by Finance Minister II Datuk Seri Ahmad Husni Hanadzlah,“ he added.

He said KWAP also received a letter from the Finance Ministry, dated Aug 22, 2011, giving a guarantee to SRC’s RM2 billion loan for 10 years.

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

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