Witness explains funds from Najib going into personal, not Umno, account

"If it ended up in the division's account, it would involve the annual general meeting," he explained. 

"But if it goes through me, it will go straight to the management. The AGM will involve external auditors."

Asmadi said the funds were used to settle debts, finance a Maulidur Rasul event, pay teachers to conduct extra tuition classes, and provide uniforms for a school band.

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The tenth witness, Johor Bahru Umno secretary Abu Talib Alias, also said he received a cheque for RM300,000 from Najib, which was made out to the state branch of the party.

Abu Talib explained that the funds were used to finance 86 party divisions, alms for the poor during Ramadhan, and financial aid during disasters, such as tropical storms.

In his cross-examination, Shafee had tried to establish that it has been standard practice for Umno presidents to finance its divisions since the party was under the helm of Dr Mahathir Mohamad.

The morning session also saw testimony from contractor Daud Muhammad and caterer Munir Osman.

Daud Muhammad said he issued a bill for RM77,300 in 2014 for work on Najib's house in Pekan, known as Seri Kenangan.

Munir, meanwhile, testified that he, in his capacity as a trustee of the Rumah Penyayang Tun Abdul Razak orphanage, received RM400,000 from Najib in 2015 to maintain and operate the facility.

Najib is being tried on three counts of criminal breach of trust, three counts of money laundering, and one count of abuse of power in relation to SRC International Sdn Bhd.

The former 1MDB subsidiary borrowed RM4 billion from Retirement Fund Incorporated (Kwap), which was used to fund several investments that did not provide the expected returns.