Day 17: RM2b disbursed before gov't's letter of guarantee - witness
LIVE | The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 17th day today at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings...
LIVE | The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 17th day today at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings.
KEY HIGHLIGHTS
- Proceedings start at 9am tomorrow, judge reminds parties
- RM2b disbursed before gov't's letter of guarantee - witness
- Your question is conjecture - DPP objects to Najib's lawyer
- Use of Islamic financing method an internal decision
- Witness: I wasn't there when Najib communicated on RM2b loan
- Najib's note was a request, not order - witness
- Witness: Minutes don't show Najib coerced KWAP investment panel
- KWAP investment panel not bound by external orders
- Witness: KWAP fixed income dept could've rejected SRC loan bid
- Dates for Najib and Irwan Serigar's CBT trial fixed
- Shafee's case mention ends, trial awaits judge
- Delay due to Shafee mention
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Reporting by Hariz Mohd and Hidir Reduan. Social media updates by Ewe Linq Yenn.
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Proceedings start at 9am tomorrow, judge reminds parties
3.45pm - Judge Mohd Nazlan Mohd Ghazali reminds all parties that proceedings tomorrow start at 9am and not 10.30am like today.
Earlier, proceedings did not begin around 9am as accused Najib Abdul Razak's lead counsel Muhammad Shafee Abdullah had to attend his (Shafee) money laundering case mention before High Court judge Collin Lawrence Sequerah.
Shafee's co-counsel Harvinderjit Singh apologises to Nazlan, and adds that there were applications before Sequerah, among others.
"Tomorrow, we can commence at 9am," DPP V Sithambaram assures the judge.
Proceedings then break for the day and will resume for further cross-examination of 35th witness Azlida Mazni Arshad tomorrow.
RM2b disbursed before gov't's letter of guarantee - witness
3.35pm - KWAP vice-president Azlida Mazni Arshad testifies that it was directed by the Finance Ministry via a letter dated March 28, 2012, to disburse the RM2 billion loan to SRC International first before a letter of government guarantee was provided 10 days later.
The 35th witness confirms this during cross-examination by Najib Abdul Razak's counsel Harvinderjit Singh.
Harvinderjit refers to an exhibit, which is a letter from the ministry to KWAP dated March 28, 2012.
The lawyer says that the letter was signed by a ministry representative named Maliami Hamad, and that it indicates cabinet approval for the letter of guarantee for the second loan of RM2 billion by SRC International.
Harvinderjit: This shows the government guarantee of the loan?
Azlida: Yes.
Harvinderjit: The government asked (for KWAP) to disburse the loan first (before the letter of guarantee is issued)?
Azlida: Per letter.
Harvinderjit: This shows a firm commitment by the government, that the commitment never changed from the second facility (RM2 billion) to this letter, and then to the letter of guarantee?
Azlida: Yes.
Harvinderjit then asks whether the letter symbolises the government's commitment to guarantee for the second RM2 billion loan, to which she replies "Yes".
This contrasts with the first tranche of RM2 billion loan given by KWAP to SRC International in August 2011, whereby the government's letter of guarantee was issued first before the loan was disbursed.
Your question is conjecture - DPP objects to Najib's lawyer
3.05pm - DPP V Sithambaram objects to lawyer Harvinderjit Singh's question to witness Azlida Mazni Arshad on whether it would be hard to determine how the loan to SRC International was utilised as the money was mixed together.
Sithambaram (photo) tells the lawyer that the question is conjecture.
Harvinderjit: For example, say loan facility says KWAP loan money cannot be used for Corporate Social Responsibility, but to conclude that, must first differentiate the loan money and (other) proceeds.
If money is mixed together, this would be hard to determine.
Sithambaram: This is a legal question.
Harvinderjit: This is a legal witness, can give a legal opinion.
Sithambaram: Whether the money is mixed or not, this is conjecture.
Even though judge Mohd Nazlan Mohd Ghazali appears not having said anything, Harvinderjit is seen trying to rephrase his question.
Among the accused Najib Abdul Razak's charges are for money laundering, which involves the transfer of RM42 million of SRC International's funds across multiple entities.
Use of Islamic financing method an internal decision
3pm - KWAP vice-president Azlida Mazni Arshad tells the court that the retirement fund's decision to use Islamic financing method in its loan facility to SRC International was an internal decision.
The prosecution's 35th witness states that she, however, does not know who made the decision and believes then KWAP CEO Azian Mohd Noh might know the answer.
Earlier, the court also hears from Azlida that a KWAP investment panel meeting decided in 2011 that 1MDB CEO and chairperson should be interviewed over SRC International's loan application.
She testifies that the CEO and chairperson of KWAP were supposed to meet with the CEO and chairperson of 1MDB.
The witness also agrees to a question by Harvinderjit that this was an example that the panel had deliberated on the investment paper.
Witness: I wasn't there when Najib communicated on RM2b loan
2.25pm - KWAP vice-president of legal and secretarial affairs Azlida Mazni admits that she was not personally present at the time when then prime minister Najib Abdul Razak allegedly communicated for the retirement fund for public servants to expedite the RM2 billion loan application to SRC International.
The 35th witness made the admission during cross-examination by Najib's lawyer Harvinderjit Singh.
Harvinderjit: You were not there during the (actual) communication (by Najib to then KWAP chairperson Wan Abdul Aziz Wan Abdullah)?
Azlida: Yes.
Harvinderjit: Any such (alleged) communication was based on the (KWAP) CEO (chief executive officer) reporting (to KWAP special investment panel meeting)?
Azlida: Yes.
Previously, the witness testified that KWAP's then CEO Azian Mohd Noh had informed the panel meeting on July 19, 2011, regarding the purported urging by Najib to Wan Abdul Aziz.
Proceedings resume
1.58pm - Proceedings resume before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali.
Najib's note was a request, not order - witness
12.50pm - Witness Azlida Mazni Arshad of KWAP testifies that a handwritten note by then prime minister Najib Abdul Razak indicating his approval for SRC International's request to secure a loan from the retirement fund in 2011 was only a request, instead of an instruction.
She also agrees with defence counsel Harvinderjit Singh that KWAP's fixed income department also understood that Najib's note was not an instruction.
As such, Azlida confirms, this is why the department went on to propose an RM1 billion loan for SRC International, instead of RM3.95 billion as applied for by the 1MDB subsidiary.
On May 2, another KWAP employee named Amirul Amran Ahmat had testified that Najib had indicated his approval for SRC International's request for a loan from the retirement fund through a handwritten note.
The note, which stated "Agree with KWAP giving the loan to SRC", was written on a letter sent to the then premier by SRC International on June 3, 2011.
The letter was an application by SRC International for a RM3.95 billion loan from KWAP for the purpose of "modal pusingan" (working capital) and unrestricted general investment.
The court then takes a 30-minute break and will resume at 1.40pm tentatively.
Witness: Minutes don't show Najib coerced KWAP investment panel
12.45pm - 35th witness Azlida Mazni Arshad testifies that the KWAP investment panel minutes did not show that panel members were coerced by then prime minister Najib Abdul Razak to approve a loan totalling RM4 billion to SRC International.
The KWAP vice-president says this during cross-examination by Najib's counsel Harvinderjit Singh (photo).
Harvinderjit: There are no minutes on the KWAP investment panel saying they approved the loan because it was instructed by the prime minister (Najib in 2011 and 2012)?
Azlida: Not in the minutes.
Harvinderjit: If it were true, it would have been in the minutes?
Azlida: Yes.
Harvinderjit: There were no minutes of the investment panel where it was noted that they (KWAP investment panel members) had no choice but to approve the loan to SRC International, (regardless of) whether it was for the first or second loan?
Azlida: Yes.
Harvinderjit: Otherwise, they would have breached their duty to KWAP?
Azlida: Yes.
KWAP investment panel not bound by external orders
12.25pm - Witness Azlida Mazni Arshad testifies that KWAP's investment panel is not bound by the instruction of any person or body regarding matters under the purview of the retirement fund for public servants.
During cross-examination by accused Najib Abdul Razak's lawyer Harvinderjit Singh, the 35th witness agrees with the question by the lawyer on the matter.
Harvinderjit refers to section 14 of the Retirement Fund Act 2007, which states that the panel can only decide on loans for investment-related matters which brings profits to the fund.
Harvinderjit: The investment panel cannot approve loans where terms are not remunerative to the fund?
Azlida: Yes.
Harvinderjit: Otherwise, they commit a criminal offence where they face a possible RM2 million fine or maximum 10 years’ jail. Every investment panel member is bound by this?
Azlida: Yes.
Azlida also confirms to Harvinderjit that the panel does not need to secure ministerial approval.
In response to his query whether the panel is bound by the instruction of the prime minister, deputy prime minister or any other minister, she merely says, "Ideally they are not bound."
Witness: KWAP fixed income dept could've rejected SRC loan bid
12pm - Retirement Fund Inc (KWAP) vice-president (legal and secretarial affairs) Azlida Mazni Arshad (photo) testifies that the fund's fixed income department (FID) could have rejected SRC International's loan application.
During cross-examination by defence counsel Harvinderjit Singh, she agrees that there are two levels of authorisation that need to be passed before a panel investment paper prepared by FID personnel is presented to the KWAP investment panel.
Azlida also agrees that the two authorities involved - namely the head of department for FID, and KWAP CEO - could choose not to sign the paper should they feel that something is not right.
Harvinderjit: If a member of FID finds that loan applicant is questionable, would they put this (concern) in paper?
Azlida: Yes.
Harvinderjit: You have a vice-president (in charge) of FID. There is no compulsion for them to sign (papers)?
Azlida: Yes.
Harvinderjit: In fact, if anybody force them to sign, will a police report be lodged?
Azlida: Yes.
Harvinderjit: Having signed the investment paper, FID members are bound to what they say?
Azlida: Their proposals? Yes.
Harvinderjit: (refers to an investment panel paper) Here we have 19/2011 investment panel paper. Prepared by FID?
Azlida: Yes.
Harvinderjit: Page 14. In preparation of this (paper), there are two layers. The HOD (head of department) and CEO?
Azlida: Yes.
Harvinderjit: If any of three persons (HOD, CEO, and person preparing the paper) find anything lacking in the investment paper, they can choose not to sign?
Azlida: Yes.
Harvinderjit: It is their duty to act in the best interests of KWAP?
Azlida: Yes.
The witness, in her testimony, also agrees to a question put by Harvinderjit that the panel investment paper prepared by FID was a recommendation to the investment panel, and that it was approved by the head of FID and KWAP CEO.
Harvinderjit: The panel was invited to deliberate and consider on the following. The FID did not recommend this?
Azlida: They recommended it.
Harvinderjit: When members of the FID have prepared and HOD reviewed (a paper), and signed off there, we take it as though they are representing to the CEO and investment panel, that whatever is being proposed and recommended here should be seriously considered by the investment panel?
Azlida: Yes.
The court then takes a short break. It is expected to resume with more questions by Harvinderjit.
Dates for Najib and Irwan Serigar's CBT trial fixed
10.40am - Judge Mohd Nazlan Mohd Ghazali fixes Jan 6 next year for the first day of Najib Abdul Razak and former Treasury secretary-general Mohd Irwan Serigar Abdullah's (below) criminal breach of trust trial involving RM6.64 billion.
He sets the dates during mention of the case before him today.
The other dates set are Jan 7-9, 20-23, 27-30, then Feb 3-6, 10-13,17-20, 24-27, and March 2-5, 9-12, to April 6-9, 13-16, 20-23, 27-30.
Irwan is not present as he is allowed to be exempted from today's proceedings.
After this proceeding, Najib's SRC International trial begins.
Shafee's case mention ends, trial awaits judge
10.30am - Accused Najib Abdul Razak and his lead counsel Muhammad Shafee Abdullah enter the court again.
Shafee has just wrapped up his separate money laundering case mention before Kuala Lumpur High Court judge Collin Lawrence Sequerah.
Shafee and other members of the defence team are seen preparing at the front of the court for the proceedings to commence.
Attorney-General Tommy Thomas is also seen in court with other members of the prosecution.
However, it is understood that judge Mohd Nazlan Mohd Ghazali will first attend to a separate unrelated case mention, before proceeding with Najib's SRC International trial.
The former premier enters the dock to await proceedings.
Najib steps out of court
10.04am - Proceedings for the day have yet to start so accused Najib Abdul Razak steps out of court.
Najib's lead defence lawyer Muhammad Shafee Abdullah is not seen in court as he is still attending to his separate money laundering case at another High Court.
Delay due to Shafee mention
9.02am - Clad in a black suit and blue tie, accused Najib Abdul Razak enters the court and takes a seat at the front row of the public gallery.
However, his lead counsel Muhammad Shafee Abdullah (above) is first attending mention of his (Shafee) money laundering case before another Kuala Lumpur High Court.
Once the case mention is done before judge Collin Lawrence Sequerah, Shafee will proceed to the SRC International trial.
All eyes will be on the line of questioning that Najib Abdul Razak’s defence team has prepared for the cross-examination of Azlida Mazni Arshad in the former prime minister’s SRC International trial at the Kuala Lumpur High Court at 9am this morning.
This is due to Azlida's testimony during the prosecution’s examination-in-chief on Thursday last week.
She is the 35th witness and Retirement Fund Incorporated (KWAP) vice-president of legal and secretarial affairs.
Azlida testified as to how the then premier Najib had urged the retirement fund for public servants to expedite the approval of a RM2 billion loan to SRC International.
The hearing before judge Mohd Nazlan Mohd Ghazali was told that the accused made the request through then KWAP chairperson Wan Abdul Aziz Wan Abdullah.
She said this was followed by KWAP's then CEO Azian Mohd Noh briefing the fund's special investment panel in a July 19, 2011 meeting. The witness had minuted the meeting.
In 2011, Najib was then also finance minister and chairpersonn of 1Malaysia Development Bhd’s board of advisors.
SRC International was then a subsidiary of 1MDB, but later in Feb 2012 the former (SRC International) had its ownership transferred from 1MDB to Minister of Finance Incorporated (MOF Inc).
Past testimonies pointed to SRC International receiving a total RM4 billion in loans from KWAP in two main tranches - first RM2 billion in Aug 2011 and the second RM2 billion in March 2012.
The witness had also given oral evidence on how, during the same July 19, 2011 meeting, the special investment panel agreed that RM2 billion loan was too high due to concern on SRC International’s RM2 paid-up capital, and had initially only agreed to grant an RM1 billion loan.
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