Witness: KWAP panel need not heed cabinet ministers
NAJIB TRIAL | The defence team of Najib Abdul Razak today attempted to disassociate the former prime minister from KWAP's decision to grant RM4 billion in loans to SRC International Sdn Bhd.
The trial began with the defence cross-examining KWAP vice-president (legal and secretarial affairs) Azlida Mazni Arshad, who minuted a crucial KWAP investment panel meeting which granted the first RM2 billion tranche of the loan...
NAJIB TRIAL | The defence team of Najib Abdul Razak today attempted to disassociate the former prime minister from KWAP's decision to grant RM4 billion in loans to SRC International Sdn Bhd.
The trial began with the defence cross-examining KWAP vice-president (legal and secretarial affairs) Azlida Mazni Arshad, who minuted a crucial KWAP investment panel meeting which granted the first RM2 billion tranche of the loan.
Azlida agreed with counsel Harvinderjit Singh that the investment panel did not need the approvals of cabinet members to make a decision, and was not bound by the cabinet.
The court also heard that the panel is not allowed to lend money, unless it is satisfied that the fund would make money off the loan.
Azlida (photo) agreed when Harvinderjit suggested that panel members were aware of an RM2 million penalty or jail time if they were convicted for dereliction of duty.
She also agreed that the panel did not minute any instructions from the prime minister to approve an RM3.95 billion loan to SRC International Sdn Bhd.
Last week, when examined by the prosecution, Azlida testified that Najib had urged KWAP's chairperson Wan Abdul Aziz Wan Abdullah to expedite SRC International's proposal for an RM3.95 billion loan from the fund.
The panel was informed of Najib's request later. Despite its reservations, the panel eventually approved a loan for RM2 billion after securing a government guarantee.
During cross-examination today, Azlida agreed with Harvinderjit that the panel deliberated on the proposal and deferred its decision, suggesting that it did not rush to a decision.
On Najib's handwritten note which appeared on SRC International's proposal for the RM3.95 billion loan, Azlida agreed that it would not amount to an instruction from the then-prime minister.
The note, which stated "Agree with KWAP giving the loan to SRC," accompanied a letter sent to Najib by SRC International on June 3, 2011.
Harvinderjit then suggested that the panel had only agreed to the RM2 billion loan – the first tranche – after the government agreed to guarantee SRC International's debt.
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