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A former company director today testified that he had no choice but to give RM3 million in "political funds" to former Felda chairperson Mohd Isa Samad.
Gegasan Abadi Properties (GAP) ex-director Ikhwan Zaidel said Isa had asked for the funds through his then special officer Zahid Md Arip.
Zahid is currently the political secretary to Prime Minister Dr Mahathir Mohamad.
GAP is the company which sold the Merdeka Palace Hotel in Kuching to Felda Investment Corp (FIC), a deal which Isa is accused of soliciting bribes for.
In his witness statement today, Ikhwan said he had met with Zahid several times while in Kuala Lumpur to negotiate the deal between FIC and GAP.
"In a meeting at Restoran Binjai, Zahid told me that 'Tan Sri (Isa) was a politician' and as such needed funds to do his political work.
"I had no choice but to obey Isa's request which was relayed through Zahid, because if I didn't, Isa might delay payment to GAP," he said.
He said that Zahid did not mention at the time how much funds should be given.
Ikhwan said he also understood that the payment through Zahid was meant for Isa as a commission for helping to secure the deal between FIC and GAP.
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Ikhwan said that eventually, Zahid (photo) asked for RM3 million for Isa.
After this, in early July 2014, Ikhwan said Zahid had contacted him for an advance of RM100,000 for Isa.
"I abided by the request. At the time GAP had not received any payment from FIC yet," he said.
Ikhwan said the only other person who knew about the funds channelled to Isa was then-GAP director Ibrahim Baki.
He said the company had no intention to pay Isa, and the matter was never brought to a board meeting, necessitating other avenues for the payments to be made.
Isa is facing charges of abuse of power and receiving bribes totalling RM3 million from GAP in relation to the Merdeka Hotel purchase by FIC.
The hotel was sold at RM160 million, RM7 million more than the market price of RM153 million.
Previously FIC chief executive officer Mohd Zaid Abdul Jalil testified that the extra RM7 million was a "goodwill" payment that Isa suggested. - Mkini
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