The Kuala Lumpur High Court today heard that the purchase of Merdeka Palace Hotel & Suites (MPHS) in Sarawak by Felda Investment Corporation Sdn Bhd (FIC) did not adhere to the mandate set by Felda.
Former FIC chief executive officer Mohd Zaid Abdul Jalil said this was as Felda had set that any investment exceeding RM100 million must first be brought to the Felda board of directors (BOD) for approval.
According to Zaid, FIC did not obtain the Felda board’s approval for the takeover of the RM160 million Kuching hotel, as then chairperson Mohd Isa Samad had decided not to table a request for approval.
“It definitely did not follow Felda's mandate. As the FIC CEO, I will carry out any decision by the FIC board,” he said during questioning.
FIC, a subsidiary of Felda bought MPHS for RM160 million in 2015.
Zaid was today testifying as the 15th prosecution witness in the graft trial of Isa, a former Felda chairperson.
Isa is standing trial for one count of criminal breach of trust and nine counts of receiving bribes of more than RM3 million for allegedly lopsided deals which he had pushed through in FIC.
Deputy public prosecutor Afzainizam Abdul Aziz had asked the witness to explain if the hotel purchase had been carried out according to a mandate.
Even so, Zaid said FIC’s management decision to sign the sales and purchase agreement and make payment to the hotel owner Gegasan Abadi Properties were in line with the decision and approval of FIC’s board of directors.
He further confirmed that no report of the decision was made by FIC management or its BOD.
“To me (no report) was made on the decision and approval by the board. So not wrongdoing in the hotel purchase at FIC level,” the court heard this morning.
He was answering a question by Afzainizam on why both the FIC management and its BOD did not prepare a report to the necessary parties upon discovering the hotel acquisition did not adhere to Felda protocol.
The hotel acquisition was also not reported in the meeting held with the Felda BOD on Dec 1, 2014, he said.
To a question as to why he did not seek the Felda board’s permission for the takeover during the meeting, Zaid said: “I was invited (to the meeting) in the capacity of a guest. I informed (the Felda BOD) of FIC’s progress report,” he testified.
“I did not report the MPHS hotel purchase as the meeting was to inform of FIC progress and not to obtain permission for the takeover.”
Witness denies testimony coerced by MACC
Meanwhile, Zaid, 45, denied that his testimony for the case was given on the urging of the MACC.
He also denied he had reached a deal with the anti-graft body to ensure he was not charged in relation to the purchase of MPHS by FIC.
This came after defence counsel Salehuddin Saidin asked if the witness was promised an escape from prosecution in exchange for cooperating with the MACC.
“I disagree,” Zaid responded.
Salehuddin: Do you agree all (your) testimony is given upon the coercion and promises you would not be charged?
Zaid: I disagree
Salehuddin: Assuming you did not cooperate, you would have been charged?
Zaid: I disagree
The witness further disagreed he was assisted by MACC to answer questions during the trial.
Zaid had been detained by the MACC on July 31, 2017, and remanded for seven days to aid in its investigation into the purchase of a hotel in London.
Zaid today maintained his detention had nothing to do with MPHS and was only for FIC’s purchases of hotels in London and Port Dickson.
“After that, I was released and recalled to assist in the investigations into the hotel purchase in Kuching," he said. - Mkini
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