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Thursday, June 20, 2019

NAJIB TRIAL - Day 29: 'Najib didn't walk out when cabinet discussed SRC International'


The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 29th day today at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings.

Summary of Najib’s SRC RM42 million case

Najib is facing 7 charges relating to RM42m involving SRC International, a former 1MDB subsidiary.

KEY HIGHLIGHTS
  • SRC was 'the PM's company' - witness says a superior told her 
  • I was under duress to speed up SRC's RM2b loan process - witness
  • 'We only answer to the prime minister'

Witness: Najib didn't walk out when cabinet discussed SRC International
12.10pm: Retired cabinet deputy secretary-general Mazidah Abdul Majid (above) testifies that then premier and finance minister Najib Abdul Razak never walked out of cabinet meetings in 2011 and 2012 which discussed the proposal for the federal government to give a government guarantee to SRC International for the over RM4 billion in loans it received from the Retirement Fund Incorporated (KWAP)
She confirms this during cross-examination by Najib's lead defence counsel Muhammad Shafee Abdullah.
Shafee: Referring to SRC (discussion by the cabinet over granting a government guarantee for the total RM4 billion in loans), you mentioned (in previous oral evidence) that nobody (Najib or other cabinet ministers) walked out (due to conflicts of interest)?
Mazidah: I said nobody walked out.
Shafee: You did not say whether he (Najib) should have walked out?
Mazidah: I am not stating my opinion.
She agrees with Shafee's contention that if there had been any issue with Najib being in a conflict of interest over cabinet discussions on SRC International, then the ministers present would have raised the matter.
Shafee: Every cabinet member, if they had knowledge (over any conflict of interest involving Najib and SRC International), they would have alerted (Najib in the cabinet meetings). There were four or five lawyers (ministers with legal training), they would have alerted but your memory said there was not much debate about it, it went smoothly.
Mazidah: Yes.

SRC was 'the PM's company' - witness says a superior told her 
10.45am - The High Court hears from a Finance Ministry official that she was told by her superior to speed up the processing of SRC International's application for government guarantee because it was "the prime minister's company".
Afidah Azwa Abdul Aziz (above) testifies under re-examination by DPP Suhaimi Ibrahim that this was told to her in 2011 by her then superior in MOF's Management, Loan, Financial Market and Actuary Department, Maliami Hamad.
The head assistant secretary at the department then, Afidah was tasked to process SRC International's application to get a government guarantee for it to secure an RM2 billion loan, which the company later obtained from Retirement Fund Incorporated (KWAP) in the same year.
She had earlier testified during cross-examination by the defence that she was under duress to hurry SRC International's application.
Suhaimi: You said that you were under duress (when processing the application). And you complained to Maliami, who was the head of the department.
Afidah: Yes I did.
Suhaimi: And he said he received the order (to hurry the processing). Did you ask him further who had given the order?
Afidah: As far as I remember, I did ask him.
Suhaimi: What did Maliami say then?
Afidah: He said this was an order by his superior.
Suhaimi: Did you ask him any further?
Afidah: I did ask him why this needed to be hurried, and Maliami answered: "This is the prime minister's company".
Afidah's answer, however, receives an objection from defence counsel Yusof Zainal Abiden, who raises that Afidah early only testified citing that Maliami only told her it was an order.
He says that Afidah told the court when being questioned by Shafee that she had accepted Maliami's answer.
The objection prompts DPP V Sithambaram to interject, saying that it is a follow-up question to what had transpired during cross-examination by Shafee earlier.
The lawyers then lock horns over whether this testimony by Afidah can be accepted, with the defence saying it is hearsay evidence.
The prosecution, however, defends Afidah's testimony, saying that she was testifying on what she was told by her superior. Sithambaram also says that it could not be hearsay as they will also be calling Maliami to testify, where the court can ask him about this.
After about 10 minutes of submissions by the lawyers, Justice Mohd Nazlan Mohd Ghazali rules that he will allow the answer, citing that the testimony arose by the answer that Afidah gave during cross-examination earlier.

I was under duress to speed up SRC's RM2b loan process - witness 
9.55am - Finance Ministry Strategic Investment Division deputy secretary Afidah Azwa Abdul Aziz testifies that she was put under duress by her superior in 2011 in order to speed up the processing of SRC International's application for government guarantee in the RM2 billion loan from Retirement Fund Incorporated (KWAP) to the company in 2011.
The 41st witness says this during cross-examination by lawyer Muhammad Shafee Abdullah.
She is explaining to Shafee (below) what she meant by "digesa" by her then superior Maliami Ahmad to speed up the application.
Shafee: I suggest that this process by Maliami of hurrying up, is not an issue of "digesa-gesa", only merely to speed up the process (percepat proses). You were not "digesa".
Afidah: I was digesa, I was under duress.
Shafee: It was Maliami who put you under duress?
Afidah: Yes.
Shafee: Is he still your superior?
Afidah: Not anymore.
Shafee: Thus, now it is easier for you to explain.
She also says that she did not record any complaint she had made over the issue.

'We only answer to the prime minister'
9.45am - "We only answer to the prime minister".
Finance Ministry Strategic Investment deputy secretary Afidah Azwa Abdul Aziz testifies that she was told this in Aug 2011 by Zahid Taib, a representative from SRC International.
She is explaining what transpired during a meeting between her and Zahid as well as the company's then CEO Nik Faisal Ariff Kamil, over the company's bid for a government guarantee for the RM2 billion loan from the Retirement Fund Incorporated (KWAP) in late 2011.
During cross-examination by lawyer Muhammad Shafee Abdullah, she says this was the answer given to her by Zahid when she sought additional information from him on the company's application.
Afidah: When we tried to get information from SRC International, the answer given was "We only answer to the prime minister".
Shafee: Who told you this?
Afidah: Zahid said he is responsible to the PM (then prime minister Najib)
Shafee: But you did not complain to anybody else?
Afidah: I reported to my division head Maliami (Ahmad).
Shafee: He did not do anything and you just accepted it in the end?
Afidah: Yes.

9.27am: Buzzer in the courtroom rings. Najib Abdul Razak enters the dock as proceedings begin.
9.24am: Najib Abdul Razak's lead counsel Muhammad Shafee Abdullah enters courtroom and joins the rest of the defence team.
9am: Accused Najib Abdul Razak enters the courtroom and takes a seat at the front row of the public gallery to await the proceedings.
Also in court are DPP V Sithambaram and other members of the prosecution team as well as Najib's defence team as they wait for trial to start.
8.52am: The 29th day of Najib Abdul Razak's RM42 million SRC International trial may see two witnesses take the stand – Finance Ministry Strategic Investment Division deputy secretary Afidah Azwa Abdul Aziz, and former cabinet deputy secretary-general Mazidah Abdul Majid.
When proceedings resume before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali today, the former premier's defence team may continue its cross-examination of 41st witness Afidah, who delivered two bombshells over SRC International's debt status yesterday.
Firstly, she told the court that SRC International, which was fully-owned by the Minister of Finance Inc, not only failed to service its RM4 billion in loans from Retirement Fund Inc (KWAP) but also could not meet the interest payments.
This flew in the face of previous media reports quoting KWAP reiterating that SRC International had been servicing its debts since 2016.
Secondly, Afidah revealed that the federal government had loaned RM642 million to SRC International between 2015 and 2017 for the company to service said interest payments and thus avoid defaulting.
This would have further burdened the government as it was the guarantor for the RM4 billion loan sum.
The defence may also resume its cross-examination of 40th witness Mazidah. Her cross-examination was cut short yesterday, as she had yet to produce a few documents related to cabinet meetings chaired by Najib.
Two days ago, Mazidah testified that cabinet meetings in August 2011 and February 2012 passed a resolution for the government to guarantee the two loans from KWAP to SRC International.
- Mkini

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