'Setuju' on RM4b loan - Najib disagrees that others can't disagree if he agrees

SRC TRIAL | In government, letters are brought to the prime minister who will annotate instructions on the documents for action by the relevant departments.

The weight of the prime minister's comment in such documents and whether civil servants or heads of statutory bodies can say "no" to them became a subject during former prime minister Najib Abdul Razak's SRC International graft trial at the Kuala Lumpur High Court today.

Specifically, the prosecution had zoomed in on Najib's annotation of "Setuju" (agree) on letters for the Retirement Fund Incorporated (KWAP) to provide RM4 billion in loans to SRC International Sdn Bhd.

DPP V Sithambaram, while cross-examining Najib, had suggested that once the prime minister says "agree", those under him would not be able to say "no".

However, Najib disagreed, stating that when he said "agreed", it merely meant to start the due diligence process.

Sithambaram: When you agreed or wrote 'bersetuju', you were in agreement with the RM3.95 billion loan given by KWAP.

Najib: When I say agree, it is to agree to start the process.

Sithambaram: You wrote 'bersetuju'.

Najib: Subject to the discretion of KWAP.

Sithambaram: When the prime minister writes 'bersetuju', it is not subject to discretion.

Najib: No, I disagree.

V Sithambaram

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.

He is accused of getting the KWAP loans approved for SRC International in exchange for kickbacks.

SRC International was a former 1MDB subsidiary which was later transferred to the Minister of Finance Incorporated (MOF Inc). Najib was also the finance minister at the time.

RM42 million of SRC International's funds ended up in Najib's bank account, which he maintained that he did not know originated from the state-owned company at the material time.

Sithambaram also repeatedly pressed Najib on whether as finance minister, it made him the "ultimate boss" of KWAP chief executive officer Azian Mohd Noh, who will be responsible for dealing with loan requests from SRC International.

Najib said the prime minister would be the ultimate boss of all institutions and government-linked companies but stressed that it was not in the "strict sense".

"It is subject to the due process," he maintained.

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