Rosmah trial: Letter of intent issued to Jepak despite uncertainty over MOF's approval

LIVE DAY 8 | The corruption trial of former prime minister Najib Abdul Razak's wife, Rosmah Mansor, involving alleged misappropriation of funds for the supply and installation of solar energy at 369 rural schools in Sarawak continues today at the High Court in Kuala Lumpur.

Malaysiakini brings you live reports of the proceedings.

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KEY HIGHLIGHTS

• Letter of intent issued to Jepak despite uncertainty over MOF's approval
• 'From that perspective, there is a contradiction' - Madinah
• Defence accuses witness of trying to make Najib a scapegoat
• Najib's second minute was a specific order, says Madinah
• Finance minister can override MOE's decisions - witness
• Former MOE sec-gen: I couldn't reject solar project proposal
• Solar-powered system unsuitable for Sarawak rural schools - Madinah

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Thank you for following Malaysiakini's live report

4.30pm - Thank you for following our live report today.

Reporting by Hariz Mohd. Photographs by Mukhriz Hazim. Social media updates by Ewe Linq Yenn.

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Court ends early, resume tomorrow

12.45pm - Justice Mohamed Zaini Mazlan calls for the lunch break and tells defence counsel Akberdin Abdul Kader that he can resume his cross-examination on former Education Ministry secretary-general Madinah Mohamad after that.

However, Akberdin makes a verbal application to have the court adjourned early today, saying that he is still recovering from his sore throat and has to take his medication.

The judge allows the application but first asks Akberdin how much time he needs to finish examination on Madinah.

The counsel says he would need at least one more day.

Zaini then adjourns today's proceeding.

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Letter of intent issued to Jepak despite uncertainty over MOF's approval

12.40pm - The court hears that the Education Ministry (MOE) had issued a letter of intent to Jepak Holdings for the solar hybrid project in 2016 despite "inconsistencies" in the Finance Ministry's (MOF) approval.

Former MOE secretary-general Madinah Mohamad (photo) says MOF's approval for the project without providing additional budget meant that she had to issue the letter of intent to the contractor and at the same time, apply for more funds.

"As the gatekeeper, I had to issue the letter of intent, although the extra budget was not approved and there were insufficient funds.

"This (had to be done) while at the same time applying to the MOF for additional allocation (for the project)," she says.

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'From that perspective, there is a contradiction' - Madinah

12.15pm - The defence refers the court to a memo written by then Education Ministry secretary-general Madinah Mohamad to then education minister Mahdzir Khalid in 2016 concerning Jepak Holdings' proposal for the solar hybrid project.

In the memo, where parts of it were read in court by defence lawyer Akberdin Abdul Kader, Madinah had told Mahdzir that the solar hybrid project was a better option to power 369 schools in rural Sarawak compared with existing diesel generator sets.

When Madinah agrees that she had indeed supported the company's proposal in her memo to Mahdzir, Akberdin then points the court to Madinah's written testimony, particularly the part where she said "diesel gensets was the effective method to supply electricity" to the schools.

He then puts to Madinah if she agrees that what she told the court in her testimony was contradictory to what she had written to the minister in 2016.

Akberdin: Do you agree with me that today you said gensets were the solution? (But) in your memo dated June 16, 2016, to the minister, you said solar hybrid was a better alternative (to replace gensets).

So, do you agree that this is clearly a contradiction?

Madinah: I disagree.

Akberdin: You disagree? I have read it. It is short and easy to understand. You do not agree that before this you supported (the proposal) for solar, but now you support gensets?

Madinah: From that perspective, there is a contradiction.

Akberdin: Enough. That's the only thing I want to hear.

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Defence accuses witness of trying to make Najib a scapegoat

12pm - Defence counsel Akberdin Abdul Kader accuses prosecution witness Madinah Mohamad of trying to make former prime minister Najib Abdul Razak as her scapegoat in the solar hybrid project issue.

The lawyer makes the claim when he confronts Madinah, who is a former Education Ministry secretary-general, on her testimony blaming Najib for ordering the project's approval.

Akberdin says this was different from what Madinah had said in the same witness statement she produced in court, where the witness says she could reject a prime minister's minute if it doesn't follow government procedures.

Akberdin: I put to you that your action in this court was done in bad faith when you said the 'punca kuasa' (source of authority) came from the PM's minute dated June 7, 2016.

It was in bad faith. When you are cornered, you try to find a scapegoat. You start to push the blame to others, isn't it?

Madinah: I disagree.

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Proceedings resume

11.41am - Court resumes after the break.

11.24am - Proceedings adjourn for a short break.

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Najib's second minute was a specific order, says Madinah

11.20am - Former Education Ministry secretary-general Madinah Mohamad tells the court that under normal circumstances, a prime minister's minute that says "please consider" or "please execute" is considered as an order at-large.

A secretary-general, she adds, has the room to apply their justification in carrying out such order and bound to follow all existing government procedures.

However, Madinah claims this was not the case with the order issued by then prime minister Najib Abdul Razak through a minute that the latter wrote on the Jepak Holdings letter in June 2016.

She says the minute was a specific order to then education minister Mahdzir Khalid (photo) to follow Najib's earlier minute written in November 2015.

In the November 2015 minute directed at Mahdzir, Najib stated his agreement for Jepak's proposal for a RM1.25 billion solar hybrid project for 369 schools in Sarawak.

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Finance minister can override MOE's decisions - witness

11.10am - Witness Madinah Mohamad, who is a former Education Ministry secretary-general, testifies that as a gatekeeper in the ministry she had the authority to not follow an order from the prime minister which contradicts existing government rules and procedures.

She says this under examination by defence counsel Akberdin Abdul Kader, who questions the witness about her testimony in blaming former prime minister Najib Abdul Razak for ordering MOE to award Jepak Holdings a RM1.25 billion solar hybrid project.

Najib was also the finance minister during the material time.

However, according to Madinah, while a secretary-general has to follow procedures in matters related to government projects, there are circumstances where the finance Minister can give an overriding decision.

Akberdin: My question is that why did you entertain Jepak? This is before the matter was taken up to the Finance Ministry. Why in the first place did you support the issuance of letter of intent and letter of award (to Jepak)?

Madinah: Yang Arif, in executing direct negotiation projects, although there are guidelines that needed to be followed, there were certain situations where overriding decisions can be made by the finance minister under certain circumstances.

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Former MOE sec-gen: I couldn't reject solar project proposal

11am - Former Education Ministry secretary-general Madinah Mohamad agrees with the suggestion from a defence counsel that the ministry should have rejected the proposal from Jepak Holdings to carry out the RM1.25 billion solar hybrid project for schools in Sarawak.

This comes as she was asked by counsel Akberdin Abdul Kader about her testimony, where Madinah said the proposal by Jepak was against the Treasury circulars, of high risk, not pressing, and that it was not in the ministry's plan.

Madinah had also said that it was a form of wastage of taxpayers' money.

Akberdin then confronts Madinah on the fact that she didn't reject the proposal before, despite all what she is telling the court.

Akberdin: Why didn't you reject it. You did not, did you? While you now condemn the plan, but you did not reject it. Am I correct or not?

Madinah: I could not reject it.

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Solar-powered system unsuitable for S'wak rural schools - Madinah

10.40am - The court hears from Madinah Mohamad, the former Education Ministry secretary-general, that the ministry had no plan to implement solar technology for schools in rural areas of Sarawak.

She testifies that the permanent solution for the schools would be to connect them to the grid power line.

However, since some schools are located in remote areas, the most viable solution was to use diesel generator sets.

Madinah tells the court that the solar-powered system is not suitable for some schools in Sarawak as they are located in areas which are mostly covered by trees.

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Proceedings begin

10.05am - Proceedings begin presided by judge Mohamed Zaini Mazlan.

10am - Rosmah Mansor enters the dock while waiting for proceedings.

Also seen in court is former Education Ministry secretary-general Madinah Mohamad who is set to be cross-examined by Rosmah's counsel today.

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Former Education Ministry secretary-general Madinah Mohamad is scheduled to return to the Kuala Lumpur High Court today to continue giving her testimony in the corruption trial against the wife of former prime minister Najib Abdul Razak, Rosmah Mansor (below).

Today would be the eighth day of the trial, presided by Justice Mohamed Zaini Mazlan.

Madinah, who completed her testimony under the prosecution's examination-in-chief yesterday, is expected to face cross-examination by Rosmah's defence lawyers today.

The defence had requested to the court to postpone their cross-examination on her yesterday as counsel Akberdin Abdul Kader was not well.

Madinah, in her testimony, had told the court that the granting of RM1.25 billion project to install solar hybrid systems for 369 rural schools in Sarawak did not follow procedure.

"This solar hybrid project was not even in the Education Ministry's development plan before this," she said.

Madinah, who was later appointed auditor-general, said she had ordered an audit on the project.

If the defence questioning of Madinah can be completed today, the court might also recall seventh prosecution witness Othman Semail for the defence's cross-examination.

Othman, who is Treasury deputy secretary-general, also gave his testimony under the prosecution's examination-in-chief yesterday.

In his testimony, Othman said that the Finance Ministry had initially rejected the application to pay Jepak Holding an advance of RM130 million for the solar hybrid project.