RM9m kickback in Felda-linked hotel sale went to Sarawak political fund

A consulting firm that was to receive RM10 million commission for facilitating the Felda Investment Corporation’s (FIC) purchase of the Merdeka Palace Hotel in Kuching had to return RM9 million in kickback, the Kuala Lumpur High Court heard today.

JV Evolution Sdn Bhd director Azizi Abd Wahab – who is the prosecution’s 16th witness - testified that the money went to a ‘political fund’ in Sarawak.

He said he and his business partner Mazeed Abd Wahab accepted only RM1 million of the commission and returned the rest of the money because their company had played a limited role in the sale.

The hotel had belonged to Gegasan Abadi Properties Sdn Bhd at the time.

“After my company JV Evolution was appointed as the sales agent circa April 2014, Mazeed and I met (former Gegasan Abadi director Ikhwan Zaidel) at his house in Sunway Opal Condominium, Petaling Jaya.

“During the meeting, Ikhwan said JV Evolution would get to keep only RM1 million out of the RM10 million commission on grounds of limited involvement (in the Merdeka Palace sale).

“Mazeed and I agreed,” Azizi said when reading out his affidavit, during the graft and abuse of power trial against former Felda chairperson Mohd Isa Abdul Samad.

Isa (above) is accused of receiving RM3 million in bribes. The case is being heard before High Court judge Mohd Nazlan Mohd Ghazali.

Azizi then went on to tell the court that Ikhwan has asked him and his business partner Mazeed to pay the remaining RM9 million from the commission to a “political fund” in Sarawak.

“Out of the RM9 million, Ikhwan would receive RM6.75 million due to taxes on JV Evolution’s business activities,” he added.

Previously, Ikhwan who is the 16th prosecution witness told the same court that he had paid RM3.9 million to Isa, using the latter’s special officer Zahid Md Arip as an intermediary.

The money paid in nine tranches between July 2014 and December 2015.

Apart from the first transaction of RM100,000, Ikhwan said all other payments had been made using money received from Azizi and Mazeed.

Meanwhile, when Ikhwan was cross-examined earlier today, he claimed that he made no records of the RM3.9 million paid to Isa, following the FIC’s purchase in 2014 for RM160 million.

“I didn’t note it down. The payment was made based on trust because it was my own money,” he said, when questioned by lawyer Salehuddin Saidin.

This prompted a rebuke from Salehuddin, who chastised Ikhwan as ‘insane’ and questioned the reliability of his testimony.

Salehuddin: You handed over RM100,000 (for the first payment) and there were no records at all?

Ikhwan: Yes.

Salehuddin: You yourself also didn’t make any record?

Ikhwan: Yes, it’s my own money.

Salehuddin: You are lying because it is impossible anyone would hand over money to a third party without any records.

Ikhwan: I disagree.

Salehuddin: Do you agree that you paid RM3 million in instalments?

Ikhwan: Agree.

Salehuddin: Then you must have made records.

Ikhwan: Disagree.

Salehuddin: Is your testimony all lies?

Ikhwan: I completely disagree.

Salehuddin then questioned Ikhwan’s ability to recall the details of all transitions without any records.

Salehuddin: When you paid Zahid, did you took notes for the record?

Ikhwan: No.

Salehuddin: Do you think you can remember all of them? How can you verify how much you have paid?

Ikhwan: I disagree.

Salehuddin: Again I ask you: Are you lying in court?

Ikhwan: I disagree.

Salehuddin: How can you remember all the dates when you made the transactions?

Ikhwan: I disagree. The MACC has records.

Salehuddin: What records? Show me? No records. You yourself can’t remember when you paid? You trust the dates given by the MACC?

Ikhwan: I disagree.

Salehuddin: Do you agree that since you did not count or record the transactions, there is no reason for the court to believe you?

Ikhwan: I disagree.

During re-examination, deputy public prosecutor Afzainizam Abdul Aziz asked Salehuddin why he did not bother making records of the transaction.

Ikhwan (above) replied that he didn’t see the need to do so because the bank has a record of the transactions.

“Each time we pay Zahid, we just need to remember how much has already been paid in the last transaction.

“We didn’t need to keep records. The bank has a record each time Azizi paid me,” he said.

Afzainizam also asked Ikhwan why he did not contact Isa after each payment.

“Each time I paid Zahid, there are no complaints from Isa. So there are no problems (hence no reason contact him),” he replied.

Later during Azizi’s testimony, the JV Evolution director described how he met Ikhwan circa July 2013 and introduced Zahid to him.

He said he was travelling on his umrah (minor pilgrimage) at the time, where he met Ikhwan who introduced himself as the owner of Merdeka Palace and was looking for a buyer for the hotel.

“I suggested that the approach government-linked companies such as Tabung Haji and Felda. He asked if I knew anyone in Tabung Haji or Felda.

“I said I know someone in Felda, Zahid Md Arip, who was Isa’s special officer,” he said.

He said he brought Ikhwan to meet Zahid at Menara Felda in September 2013.

“During the meeting, Ikhwan told Zahid he would like to propose a sale of Merdeka Palace to Felda,” he said, adding that Ikhwan also submitted a proposal paper on the sale.

Following the meeting, Ikhwan obtained approval from Gegasan Abadi’s board to appoint Azizi’s company as a consultant for the sale, with the agreement that if the sale exceeds RM150 million, the excess would be paid to JV Evolution as commission.

Previously on Oct 18, former FIC chief executive officer Mohd Zaid Abdul Jalil had told the court that Isa had asked him to pay RM160 million for the hotel for “goodwill”, although the hotel was valued only at RM153 million. - Mkini