KUALA LUMPUR: Pensioners’ fund KWAP loaned SRC International RM4 billion after SRC director Nik Faisal Ariff Kamil submitted a two-page proposal to Najib Razak in June 2011, the High Court heard today.
Former KWAP vice-president Amirul Imran Ahmat said Najib, who was prime minister and finance minister at the time, minuted the letter to KWAP’s CEO Azian Mohd Noh.
The proposal letter was dated June 3, 2011. Najib was said to have given his approval two days later.
SRC was a wholly-owned subsidiary of state fund 1MDB, which was under the Finance Ministry Incorporated.
KWAP, which is said to have funds to the tune of RM104 billon at its disposal, came under the purview of the finance minister.
Amirul, under examination in chief by deputy public prosecutor Ishak Mohd Yusoff, said SRC initially applied for RM3.95 billion but KWAP only approved RM2 billion in 2011 and another RM2 billion the following year.
“From my experience working there, both loans to SRC were among the largest agreed to by KWAP,” he said.
Amirul, who was entrusted by KWAP’s management to prepare working papers to disburse the loans, said the money was given much earlier although the guarantee from the government came only later.
“Such a thing never happened in KWAP before,” he said to a further question by Ishak.
The witness said he attempted to ascertain the creditworthiness of SRC before KWAP gave out the loans, but was only partially successful.
“I sought information from SRC but I think it was in the region of only 25%,” he said, adding that he had not received SRC’s business model plan, either.
He said the loan approval was a rushed job amid a lot of pressure on KWAP.
“I was instructed to expedite the applications by KWAP’s senior management. There were frequent meetings,” he added.
Najib, 66, is facing three counts of criminal breach of trust, one charge of abusing his position and three counts of money laundering over SRC International funds amounting to RM42 million.
The Pekan MP was charged with committing the offences at AmIslamic Bank Bhd in Jalan Raja Chulan and the Prime Minister’s Office in Putrajaya between Aug 17, 2011, and Feb 10, 2015.