Najib signed the gov't guarantee for KWAP loan to SRC

NAJIB TRIAL | Najib Abdul Razak had signed the federal government's guarantee for an RM2 billion loan from Retirement Fund Incorporated (KWAP) to SRC International, the High Court in Kuala Lumpur heard today.

Witness Amirul Imran Ahmat, a KWAP officer, said Najib signed the document in 2012, as prime minister and finance minister.

In total, SRC International had received RM4 billion in loans from KWAP in two tranches. It was the largest loan ever given out by KWAP.

At that time, SRC International was a subsidiary of 1MDB. It was transferred to Finance Ministry Incorporated in 2012, after facing problems.

Najib was then the chairperson of the 1MDB's board of advisors and, according to the company's constitution, the final authority on board member appointments, including that of SRC International.

Last Friday, Amirul had explained that SRC International had sought the loan in a letter dated June 3, 2011, which contained a handwritten note signed by Najib which stated that he "agreed with KWAP giving the loan to SRC".

Given only 25 percent of documents needed

At one point, DPP Ishak Mohd Yusoff referred Amirul to a paragraph in the guarantee letter which demanded that KWAP releases the funds first, before the guarantee is applied.

Ishak: Has KWAP ever given out a loan before, only to receive a guarantee at a later date?

Amirul: Never.

Amirul explained that KWAP had requested a lot of documents from SRC International before the loan could be considered, including plans on how the money would be utilised.

He said he only received "25 percent" of the needed documents but proceeded with drafting the loan agreement anyway because there was pressure to do so.

"I was asked by management to expedite the application.

"There were a few meetings within a short span of time. Usually, if I miss one meeting, I can go for the next one. But here, I had to rush to every meeting," Amirul said.

"There was a lot of pressure to expedite the whole matter."

The defence will cross-examine Amirul at a later date. - mkini