Govt guarantee signed even before order to approve RM2 bil loan, says witness

Former prime minister Najib Razak outside the Kuala Lumpur High Court today.

KUALA LUMPUR: The High Court heard today a guarantee letter signed by Najib Razak for an additional RM2 billion loan to SRC International Sdn Bhd was dated earlier than the directive to approve the sum.

Pensioners’ retirement fund (KWAP) vice-president (Legal and Secretarial Department) Azlida Mazni Arshad said records revealed that Najib, who was then prime minister and finance minister, had signed the guarantee letter dated March 27, 2012.

“However, a finance ministry official (Maliami Hamad) wrote to KWAP the following day to approve the loan,” she said when cross-examined by Najib’s lawyer, Harvinderjit Singh.

KWAP’s Investment Settlement Department (ISD) vice-president Amirah Muhamad Nor told the hearing last week the RM2 billion was paid into two SRC accounts at AmIslamic Bank on March 28, 2012.

KWAP and SRC, however, signed a facility agreement on March 27, 2012 and a supplemental facility agreement on Aug 9, 2012.

The RM2 billion was on top of the first RM2 billion that was approved to SRC in 2011.

SRC director Nik Faisal Ariff Kamil had submitted a two-page proposal to Najib on June 3, 2011, to initially obtain a RM3.95 billion loan from KWAP, which is under the purview of the finance ministry.

On July 19, 2011, the KWAP Investment Committee approved RM2 billion, and the second finance minister signed the government guarantee letter dated Aug 26, 2011.

The amount was paid out on Aug 29, 2011.

Najib faces six charges of money laundering and criminal breach of trust in the transfer of RM42 million to his account from SRC International, a former unit of 1MDB.

He is also accused of abusing his power as prime minister by giving government guarantees on SRC International’s RM4 billion loan from Retirement Fund Inc.

The Pekan MP was charged with committing the offences at AmIslamic Bank Bhd on Jalan Raja Chulan and the Prime Minister’s Office in Putrajaya between Aug 17, 2011, and Feb 10, 2015.

The hearing before trial judge Mohd Nazlan Mohd Ghazali continues. - FMT