The chief operations officer of Pempena Sdn Bhd, Idros Mohd, told the Sessions Court in Kuala Lumpur today that the RM888,000 sent to the company to open a Malaysian restaurant in Dubai was not returned although the project was abandoned.

He said that an officer of LCL Interiors, Low Chin Meng, had suggested that the money be used to “offset” the amount that Pempena owed his company for opening Awana Beijing and Awana Hydrebad restaurants.

The proposal was brought to the board of directors on Oct 29, 2008 but was rejected, said Idros, the fifth prosecution witness in the trial of Tourism Malaysia director-general Mirza Mohammad Taiyab and former Pempena chief operations officer Mohammad Rosly Md Selamat who are charged with criminal breach of trust involving RM888,000.

Mirza, 54, and Mohammad Rosly, 57, are said to have committed the offence at the Pempena office on the 13th floor of Menara Datuk Onn at the Putra World Trade Centre in Kuala Lumpur on Feb 27, 2007.

        

Idros, 57, said that Pempena, a subsidiary of Tourism Malaysia, did not have any written procedure on investments.

Idros, who joined Pempena at the end of 2008, said the company was in a critical financial state.

He said the company owed RM5 million and had to dispose of some of its assets.

The hearing before judge Che Mohamad Zulkifly Jusoh continues tomorrow.

- Bernama