As 'ultimate boss', Najib influences KWAP - witness

NAJIB TRIAL | Najib Abdul Razak was the "ultimate boss" of Retirement Fund Incorporated (KWAP) and his influence on the fund cannot be denied, the High Court in Kuala Lumpur was told today.

Witness Azian Mohd Noh (above), KWAP's former CEO, said this when describing the authority of Najib's handwritten note on SRC International Sdn Bhd's application for an RM3.95 billion loan in 2011.

"There was no legal compulsion (to comply), but I cannot say the same for the word "influence".

"The annotation in the letter came from the prime minister and the minister of finance, who is in charge of KWAP.

"He is my ultimate boss, so I cannot deny there is a certain amount of influence,"  Azian said during re-examination by DPP Ishak Mohd Yusoff.

KWAP is an RM140 billion fund that manages civil servant pensions. The fund loaned RM4 billion in two equal tranches between 2011 and 2012 to SRC International, then a subsidiary of 1MDB.

According to an organisational chart on the fund’s website, the CEO, board and investment panel report directly to the finance minister.

After Ishak’s re-examination, Najib’s defence team cross-examined Azian again, with lead defence counsel Muhammad Shafee Abdullah (below) attempting to establish if the said influence was “self-induced”.

Shafee: Was this influence, if there was ever one, self-induced?

Azian: You ask for my opinion?

Shafee: No, this is not asking for your opinion

Azian: (The question was) whether I was compelled or (if) I was influenced. I was replying to that question (earlier).

Shafee: I am going into very narrow (details). You cannot say there was no influence. Was that (influence) self-induced by you?

Azian: I do not think it is strange for a subordinate to receive requests from their superior.

Shafee: Only on that position, as you say he is your ultimate boss? That is what you said.

Azian: That is how I said it

Shafee: Because of the hierarchy of relationship?

Azian: Yes.

Shafee: As a responsible CEO, would you have allowed KWAP or yourself to make wrong decisions based on that issue of influence?

Azian: As CEO it is my fiduciary duty to KWAP to make sure that it does not incur losses in investment. The influence is to facilitate the process of the loan.

Shafee: I see, not a substantive decision, but the facilitation of the loan application. You, as CEO of KWAP, would have made a wrong decision purely on that so-called hierarchical influence?

Azian: I repeat, my duty is to protect KWAP.

Shafee: Yes or no?

Azian: Sorry I cannot give you a yes-or-no answer because it can be misconstrued. Definitely, I would not do anything that would breach any law or any Act.

Shafee: I think that is good enough. Thank you very much. - Mkini