Businessperson received RM10m loan from Zahid with help from 'Datuk K'

Ahmad Zahid Hamidi had given a RM10 million loan to a businessperson from his charity foundation Yayasan Akalbudi, the Kuala Lumpur High Court heard today.

The businessperson, Wasi Khan @ Wasiyu Zama Israr Ahmad, said he had secured a meeting with Zahid with the help of Khalid Mohamad Jiwa, better known as "Datuk K" who is also the husband of pop star Siti Nurhaliza.

Testifying as the 21st witness in Zahid's graft trial, Wasi said he was seeking to bid for a Tenaga Nasional Bhd (TNB) coal contract in Indonesia, but the condition was to have a company with a paid-up capital of RM10 million.

As Wasi did not have RM10 million, he had sought help from friends, including Khalid. Wasi said he understood that Khalid was a close friend of Zahid.

"Khalid agreed to help me, and he invited me to meet Zahid," he told deputy public prosecutor Nur Aishah Maulat Ahmad Zakiuddin while under examination.

Wasi said he had initially requested for Khalid's help to set up a meeting with Ahmad Zahid where he asked for the then deputy prime minister's help to reduce the paid-up capital requirement from RM10 million to RM5 million.

However, he said after the meeting, Zahid declined to interfere in TNB's management and policies but said he could "arrange" financing for Wasi's company Armada Holdings Sdn Bhd.

Wasi, who is the company's chief executive officer, said in a subsequent meeting with Zahid at Parliament, the deputy prime minister instructed an officer to hand him an RM10 million cheque.

He testified that Zahid also agreed to give him one month to repay the money.

Wasi said after he scrutinised the details of the cheque, only then did he realised that it was from Yayasan Akamudi.

Wasi said after being informed by a bank official that the money was from a foundation for orphans and the poor, he voluntarily offered to repay the loan with around four percent interest.

"I confirm that there was no loan agreement between me and Zahid. It was based on Zahid's trust in Khalid," he said.

Wasi confirmed that the RM10 million was deposited into his company on Dec 7, 2015.

Wasi added that he returned the money a month later with an interest of RM69,722.65 made to Yayasan Akalbudi in two cheques.

"I confirm the cheques were signed by me. I also confirm that there is no black and white (document) between my company and Yayasan Akalbudi for the repayment of the loan," he said.

Meanwhile, Wasi, while under cross-examination by defence counsel Rosal Azimin Ahmad, admitted that he only set up his company around the time when Zahid gave him the RM10 million loan.

Wasi said the first meeting with Zahid took place in October 2015, but his company was only set up in December 2015.

Wasi also agreed that RM10 million was a huge sum and he would not have been able to raise such a large amount of funds without Zahid's help.

Zahid is standing trial for 47 charges involving the alleged misuse of the foundation's funds amounting to RM31 million.

Of the 42 charges, 12 are for criminal breach of trust, eight for corruption and 27 for money laundering.

The case is being presided by Kuala Lumpur High Court judge Collin Lawrence Sequerah. - Mkini