Spending at luxury stores were for Rosmah and diplomacy, says Najib

Najib Abdul Razak was today asked to explain his spending at luxury stores in Hawaii and Sardinia, Italy, using funds which investigators claim originated from state-owned SRC International Bhd but which the former premier insists are donations.

Najib said the US$130,625 (RM543,530) charged to his credit card at Chanel in Honolulu, which was later paid off using funds in his bank accounts, were intended for his wife Rosmah Mansor.

"The purchase at Chanel in Honolulu was a watch which I bought as a present for my wife's birthday in December," he told the Kuala Lumpur High Court when examined by defence lawyer Rahmat Hazlan.

The transaction took place on Dec 22, 2014.

Najib was also asked about the RM127,017.46 charged on his credit card at Shangri-La Hotel in Bangkok in January 2015.

On this, the former premier said he resumed his holiday in Thailand after cutting short his US trip to deal with the flood situation in Malaysia.

"After my visit to Kota Bharu to check on the flood situation, I resumed my personal holiday in Bangkok after departing directly from Kota Bahru.

"Even though the holiday was personal, I took the opportunity to meet my Thai counterparts, particularly Prayut Chan-Cha to discuss how the Thai government could assist us with the serious flood situation we were facing.

"The RM120,000 paid at Shangri-La Hotel, Bangkok, included lodging for me as well as the support staff accompanying me on the journey and out-of-pocket expenses.

"It is my right to claim the expenses from the government as I had worked during my holiday but I chose to foot the expenses myself as I did not want to complicate the matter," he said.

Najib maintained that he had full discretion to use the money in his bank account, which he claimed were donations.

Gift for ex-Qatar PM's wife

Meanwhile, Najib was also asked to explain a 763,500 euros (RM3.514 million) purchase at De Grisogono in Sardinia on Aug 8, 2014.

Najib said while he was in Sardinia for a personal holiday, he coincidentally met Sheikh Ahmad Jassim Al Thani who was the Qatar prime minister at the time.

"De Grisigono is a luxury jewellery and watch expert in Italy. The purchase made there in August 2014 was with regard to jewellery bought as a gift for Sheikh Ahmed's wife (Noor Abdulaziz Abdulla Turki Al-Subaie)," he said.

Najib said Sheikh Ahmed and Noor Abdulaziz had previously also bought gifts for Rosmah and him and it was only appropriate that he reciprocated.

"Based on that premise, we cannot reciprocate with anything less than what suits their position and generosity towards us.

"I did not want to use public funds to purchase the gifts and considering that I have an existing account, it was appropriate that I used the account instead of public funds..," he said.

Najib said he believed the gesture would benefit Malaysians and Noor Abdulaziz had later sent a thank-you note.

Asked if he believed he had the right to spend the funds, which he claimed to be donations, on luxuries, the Pekan MP answered in the affirmative.

"As I have stated earlier, I believe I retain full discretion on how to spend the funds in my account.

"I felt that the purchase we made at De Grisigino is allowed from a diplomatic point of view,” he added.

Najib, is standing trial for seven charges of money laundering, criminal breach of trust and abuse of power involving RM42 million in funds from SRC International.

Najib has denied knowledge that the money in his personal bank accounts originated from SRC International, stating it would be insane for him to willingly take funds from a state-owned entity.

The case is being presided by High Court judge Mohd Nazlan Mohd Ghazali. - Mkini