GUARANTEE LETTER SIGNED BY NAJIB NOT A DIRECTIVE TO KWAP PANEL TO APPROVE 2ND RM2 BIL LOAN, SAYS OFFICER WHO REITERATES 1ST LOAN WAS ‘EXPEDITED AT NAJIB’S REQUEST’: BUT WHILE NOT A DIRECTIVE, IT CAN INDEED BE THE ‘SOLE SELLING POINT’ AS PREVIOUS WITNESS TOLD COURT

A GOVERNMENT guarantee letter that was signed by Najib Razak did not amount to a directive to Retirement Fund Inc (KWAP) to approve its second RM2 billion loan to SRC International Sdn Bhd, a senior KWAP legal officer testified in court today.

Azlida Mazni Arshad, who is vice-president of KWAP’s legal and secretarial department, also told the Kuala Lumpur High Court that she did not witness the then prime minister and finance minister signing the guarantee letter, nor could she verify that it was in fact his signature.

A second loan of RM2 billion was tabled to the panel on March 20, 2012.

A previous witness from KWAP’s fixed income department Amirul Imran Ahmat testified last week that a letter of guarantee, signed by Najib, was the sole “selling point” for the approval of the second loan of RM2 billion.

By then, the ownership of SRC International was transferred from 1Malaysia Development Bhd to Minister of Finance Inc.

The government guarantee letter was dated March 27, 2012 and was received by KWAP. On the following day, March 28, 2012, the loan was transferred to SRC International.

When cross-examined by defence counsel Harvinderjit Singh today, Azlida reiterated her testimony last week that KWAP chairman Wan Abdul Aziz Wan Abdullah had urged the panel the expedite the first loan of RM2 billion on July 19, 2011, at Najib’s request.

She testified today, however, that she did not witness Wan Abdul Aziz meeting Najib.

Azlida also said that it was normal practice for KWAP’s investment panel to question CEO Azian Mohd Nor on investments that she approved of and that the panel was normally careful in approving loans.

She said the investment panel had initially deferred the loan pending more information from SRC International and that it showed there was no compulsion from the panel to rush the loan.

Azlida reiterated that the first guarantee letter was issued by August 23, 2011, a week before KWAP made out the first RM2 billion loan payment to SRC International.

She also referred to a letter on SRC International’s application for a RM3.95 billion loan (which was later reduced to RM2 billion), whereby Najib had signed and endorsed with his handwriting: “Agree with this proposal” (Bersetuju dengan cadangan ini).

She told the court today that the handwritten note did not amount to an instruction.

She agreed with the defence’s suggestion that the investment panel approved the first RM2 billion loan after a government guarantee letter dated August 26, 2011 was produced. That letter was signed by former second finance minister Ahmad Husni Hanadzlah.

Najib’s charges in this trial relate to the RM4 billion loan, for which he is accused of receiving RM42 million in his personal accounts in 2014 and 2015.

He faces three counts of criminal breach of trust, three counts of money laundering and one count of abuse of power.

Najib is represented by a dozen lawyers led by Muhammad Shafee Abdullah.

Attorney-General Tommy Thomas leads the prosecution, while Justice Mohd Nazlan Mohd Ghazali presides over the trial.

The trial continues tomorrow.

THE MALAYSIAN INSIGHT