MOF officer faced 'problems' in issuing gov't guarantee letter

NAJIB TRIAL | Finance Ministry officers encountered problems when issuing a letter of guarantee for SRC International Sdn Bhd's RM2 billion loan from the Retirement Fund Incorporated (KWAP), the Kuala Lumpur High Court heard today.

An officer - Maliami Hamad (above) - told the court that cabinet had on Feb 8, 2012, consented to guarantee the loan on the condition that it was utilised for investments in natural resources.

However, the loan between KWAP and SRC International had stated that the loan was to be utilised for "working capital" as well, he said.

"SRC International insisted that (the guarantee letter) include (working capital).

"That became a problem until the cabinet approved the amendment in utilisation on May 11," he told the court while under cross-examination by defence counsel Farhan Read at former prime minister Najib Abdul Razak's SRC International corruption trial 

Previously, witnesses had established that the drawdown for the RM2 billion loan was conducted on March 28, 2012.

Earlier today, Maliami told the court that then-Treasury secretary-general Wan Abdul Aziz Wan Abdullah supported SRC International's suggestion for the loan agreement to be amended to suit the cabinet decision.

He said this was suggested during a meeting between officials from the Finance Ministry, KWAP and SRC International.

The suggestion was then forwarded to then finance minister Najib Abdul Razak and then second finance minister Ahmad Husni Hanadzlah.

Both, said Maliami, agreed to amend the loan agreement though this was not executed. 

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