Pensioners’ fund loaned RM2 bil to SRC without full documents, says witness

KWAP’s ex-senior executive Amirul Imran Ahmat.

KUALA LUMPUR: The pensioners’ retirement fund (KWAP) approved a RM2 billion loan in 2011 to SRC International without proper documentation, the High Court heard in the corruption trial of Najib Razak.

Former KWAP vice-president Amirul Imran Ahmat said it received an application for a loan on June 3, 2011, for a working capital and general investments.

“The application letter was signed by (SRC director and chief executive officer) Nik Faisal Ariff Kamil,” said Amirul, who was then in charge of KWAP’s Fixed Income Department.

He said the loan application was also addressed to Najib Razak, then prime minister and finance minister, who agreed that KWAP approve the loan to SRC.

SRC was a wholly-owned subsidiary of 1Malaysia Development Bhd (1MDB), which was under the Finance Ministry Incorporated.

The witness also told the court that KWAP is allowed to provide loans for a profitable return to the federal or state governments, public authorities and companies which Putrajaya has an interest in.

Amirul said on June 16, 2011, he sent an e-mail to Noor Azlina Abu Bakar, an assistant to Nik Faisal, for further information like 1MDB’s audited accounts, latest available management records and company profile of SRC.

He said on June 29, 2011, Faisal replied through an e-mail that the documents would be sent as required by KWAP the following day.

However, he said Nik Faisal on July 1, 2011 sent an e-mail that he was unable to provide the information.

The e-mail read: “We are unable to disclose further information requested as the real estate projects are in the master planning stage of development.

“Disclosure of the detailed information requested is subject to approval of the chairman of the SRC Board of Advisers and prime minister for which we have sought and have not obtained clearance to disclose thus far.”

Amirul said despite this, KWAP’s Investment Panel approved a loan application to 1MDB on July 19, 2011 with the federal government becoming guarantor.

About a month later, he said KWAP received a letter from SRC (a company which is a subsidiary of 1MDB), that the RM2 billion be paid to them directly.

Amirul said he later saw a letter of guarantee dated Aug 26, 2011 which was signed by former second finance minister Ahmad Husni Hanadzlah.

The witness will continue to testify before trial judge Mohd Nazlan Mohd Ghazali on Monday.

Najib faces six charges of money laundering and criminal breach of trust in the transfer of RM42 million to his account from SRC International, a former unit of 1MDB.

He is also accused of abusing his power as prime minister by giving government guarantees on SRC International’s RM4 billion loan from Retirement Fund Inc.

The Pekan MP was charged with committing the offences at AmIslamic Bank Bhd on Jalan Raja Chulan and the Prime Minister’s Office in Putrajaya between Aug 17, 2011, and Feb 10, 2015.