KUALA LUMPUR: The short-term loan applications by SRC International Sdn Bhd to the Ministry of Finance to settle outstanding payments to KWAP were not tabled in the Cabinet, the High Court here was told today.
The matter was revealed by the Finance Ministry’s Strategic Investment Division deputy secretary Afwa Azwa Abdul Aziz, 44, when questioned by Deputy Public Prosecutor Datuk V. Sithambaram on 29th day of former prime minister Datuk Seri Najib Abdul Razak’s trial relating to misappropriation of SRC funds totalling RM42 million.
Sithambaram: Based on the documents available, the Cabinet did not know about the loan applications of RM250 million and RM300 million (by SRC) because they were not brought to the attention of the Cabinet?
Afidah Azwa: Correct.
Yesterday, the court was told SRC had applied for loans amounting to RM642 million with the Ministry of Finance to pay interest on the RM4 billion loan from the Retirement Fund Incorporated (KWAP).
Meanwhile, the prosecution’s 42nd witness, former non-executive director of SRC International Sdn Bhd, Datuk Suboh Md Yassin, said all of the company’s shares were transferred from 1MDB to the Minister of Finance Incorporated (MOF Inc) via a share transfer form signed by Nik Faisal.
Suboh, 68, who is now retired, confirmed when reading the witness statement that SRC had opened an account with AmIslamic Bank based on the decision of a Directors’ Circular Resolution dated August 23, 2011’, a document which he had signed.
“I also put my signature on a form to open a bank account provided by Ambank. The form shows the account number given as 211-202-201065-0 on the name of SRC International Sdn Bhd.
“Besides my signature, there are also signatures of all other SRC Board members, namely Tan Sri Ismee Ismail, Shahrol Azral Ibrahim Halmi, Datuk Che Abdullah @ Rashidi and Nik Faisal Ariff Kamil,“ he said, while also verifying the documents shown to him by DPP Datuk Ishak Mohd Yusoff.
Suboh said SRC then applied for the RM4 billion loan from KWAP.
“The purpose of the financing application was for ‘working capital and general investment of SRC’, namely investment overseas.
“There were two applications made separately, that is RM2 billion in 2011 and RM2 billion in 2012,“ said Suboh, who had previously served with various government departments under the Administrative and Diplomatic Officer scheme from 1974 until his retirement on Jan 11, 2009.
Touching on the first loan application involving RM2 billion in 2011, Suboh, said the matter tabled by Nik Faisal was discussed at the SRC Board meeting on August 23, 2011.
Suboh said his appointment letter as non-executive director of SRC effective Aug 1, 2011, was signed by Najib, who was the prime minister at the time.
“All the former SRC Board members comprising Tan Sri Ismee Ismail as chairman, and other members, namely Shahrol Azral Ibrahim Halmi, Datuk Che Abdullah @ Rashidi and Nik Faisal Ariff Kamil were also appointed by the former prime minister and acted under his advice as ‘Advisor Emeritus’ to SRC,“ he added.
When asked by Ishak whether he remembered when Najib was appointed as SRC’s Advisor Emeritus, Suboh replied, “I do not remember (when).
The court was presided over by Judge Mohd Nazlan Mohd Ghazali. — Bernama