Zahid's daughter obtained directorship after RM8m share sale deposit - witness
A former director at Ri-yaz Asset Sdn Bhd told the Kuala Lumpur High Court today that Ahmad Zahid Hamidi’s daughter, Nurulhidayah, had previously argued that she had the right to make decisions in the company.
Abdul Rashid Abdul Manaf - who appeared as a witness at Zahid’s corruption, money laundering, and criminal breach of trust trial - said Nurulhidayah (photo, above) made the argument based on her father’s deposit payment of RM8 million to commence the transfer of Abdul Rashid’s stake in the company.
A former director at Ri-yaz Asset Sdn Bhd told the Kuala Lumpur High Court today that Ahmad Zahid Hamidi’s daughter, Nurulhidayah, had previously argued that she had the right to make decisions in the company.
Abdul Rashid Abdul Manaf - who appeared as a witness at Zahid’s corruption, money laundering, and criminal breach of trust trial - said Nurulhidayah (photo, above) made the argument based on her father’s deposit payment of RM8 million to commence the transfer of Abdul Rashid’s stake in the company.
He said the RM8,602,920 payment was paid to Ri-yaz Asset through the firm Lewis & Co on June 30, 2016, to settle arrears from a loan taken from Exim Bank to purchase a hotel in Indonesia.
The payment was a precondition from the bank to sell a 60 percent stake in the company to Nurulhidayah.
“Nurulhidayah told me that she should be able to make decisions in the company since her father had paid the deposit.
“I then proposed Nurulhidayah to become a director, and I would resign as Ri-yaz director. Nurulhidayah was then appointed as a director on Jan 27, 2017,” he said in his witness’ statement.
Abdul Rashid added that he also told Nurulhidayah that he would only transfer his shares to her after being released as guarantor for the loan and after the sale and purchase of the shares are completed.
During examination-in-chief by deputy public prosecutor Ahmad Sazilee Abdul Khairi, Abdul Rashid told the court that Zahid himself wanted Nurulhidayah (photo) to become a director.
“I was told after payment of the sum over RM8 million that Zahid said there was no reason his daughter can’t become a director since the RM8 million had been paid.
“That’s why I agreed for her to be a director and I resigned,” he said.
Abdul Rashid is the 83rd witness in the hearing on charges of corruption, money laundering, and breach of trust, which is in its 28th day today.
He explained that in June 2014, Ri-yaz had borrowed US$24.8 million (RM105.4 million) from Exim Bank to purchase a hotel in Bali, Indonesia, valued at US$31 million (RM131.75 million).
However, the company ran into problems making interest payment in accordance with the repayment schedule.
Following this, Abdul Rashid conferred with another director, Mohammed Shaheen Shah Mohd Sidek and resolved to reach one of two solutions, which is to either sell the hotel in Bali or for him (Abdul Rashid) to sell his shares in Ri-yaz.
Nurulhidayah had conveyed her wish to take over Ri-yaz and buy up Abdul Rashid’s 60 percent stake in the company through Mohammed Shaheen in 2015.
This led to a meeting between him, Mohammed Shaheed, Nurulhidayah, and Zahid at Zahid’s residence in Kajang several weeks later. During discussions, Abdul Rashid laid out several conditions for the shares sale.
Among others, Zahid would have to meet Exim Bank to release Abdul Rashid as a loan guarantor while Nurulhidayah takes over the US$24.8 million (RM105.4 million) loan. Zahid would need to pay a deposit, which was the amount of outstanding loan at the time.
Previously, Exim Bank former chairperson Mat Noor Nawi told the court that Zahid was willing to pay an advance of US$2.058 (RM8.75 million) to facilitate the share transfer to Nurulhidayah.
However, according to Abdul Rashid, Exim Bank had rejected the proposal and required him to retain at least a 10 percent stake if a sale was to take place.
“Because of Exim Bank’s decision, I disagreed with the bank’s proposal, and the sale and purchase agreement for the shares was cancelled. Based on this decision, Nurulhidayah stepped down as Ri-yaz director on July 31, 2017,” he said.
He elaborated that after the RM8.6 million payment to Ri-yaz in June 2016, RM254,879.10 was refunded to Lewis & Co in July 2016 because the outstanding loan had shrunk to RM8,348,040.90 due to a fall in the value of the US dollar.
However, since the share deal was cancelled, Mohammed Shaheen told him that Zahid (photo) wanted Ri-yaz to refund the deposit as well.
“Shaheen also informed me that Zahid told him the deposit was not his money, but it belonged to a foundation. I then instructed Ri-yaz to return the money,” he said.
When asked by Ahmad Sazilee, Abdul Rashid concurred that during the meeting with Zahid, there was no discussion whether the payment made would be a loan, financial assistance, or investment in Ri-yaz.
“No. It is just a deposit for buying the shares,” he said.
During cross-examination, the defence counsel Mohd Haziq Dhiyauddin Razali suggested that Nurulhidayah proposed to become a director in Ri-yaz to serve as a representative for Yayasan Akalbudi and the payment was an investment, but Abdul Rashid dismissed the Haziq’s suggestion.
Mohd Haziq: During the meeting (between Abdul Rashid, Zahid, Nurulhidayah, and Shaheen), I suppose that Zahid said this was an investment (in Ri-yaz).
Abdul Rashid: Didn’t say. What I know is that Nurulhidayah wants to buy. That’s all.
Mohd Haziq: I put it to you that he mentioned it, but you can’t remember.
Abdul Rashid: No. During my time with Zahid, he didn’t tell me.
Moreover, although he agreed with Mohd Haziq that all cheque transactions had involved Lewis & Co, Abdul Rashid said he didn’t know that the law firm is a trustee in Yayasan Akalbudi.
When Mohd Haziq suggested that the payment is actually an investment from Yayasan Akalbudi, Abdul Rashid replied: “I didn’t know that.”
He said he only found out that the money had come from a foundation when Shaheed told him after the deal was called off.
Questioned by another defence counsel, Ahmad Zaidi Zainal, Abdul Rashid conceded that Mohammed Shaheen and Nurulhidayah would be more familiar with the “intricate details” of the deal than him.
During re-examination by Sazilee, Abdul Rashid said the issue of investment was never mentioned in any sale and purchase agreement, and only stated Nurulhidayah as a share buyer.
Sazilee: Does it say that Nurulhidayah is acting as a proxy?
Abdul Rashid: No.
Ahmad Zahid is faced with 47 charges, including 12 counts of criminal breach of trust involving Yayasan Akalbudi funds, eight counts of corruption, and 27 counts of money laundering.
The hearing before judge Collin Lawrence Sequerah continues tomorrow.
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