KUALA LUMPUR: SRC International Sdn Bhd’s application for a RM4 billion loan from the pensioners’ retirement fund (KWAP) did not meet the fund’s requirement, the High Court heard in the corruption trial of Najib Razak.
KWAP’s former chief executive officer, Azian Mohd Noh, said the application for the loan was given to her by Najib’s special officer, the late Azlin Alias, when they met at a hotel lobby in 2011.
“According to KWAP’s policy, a borrower must submit an application together with supporting documents,” Azian said when examined by deputy public prosecutor Ishak Mohd Yusoff.
The 38th witness in the hearing said KWAP’s Fixed Income Department would study the application before tabling the proposal to the Investment Committee chaired by her.
“The Investment Committee will study the matter and a paper will be presented to the Investment Panel which will decide whether to approve or reject an application,” she said.
Azian said the letter she received from Azlin did not follow KWAP’s procedure.
“It was impossible to decipher the content when Azlin delivered the letter to me during our 45-meeting at a lobby of a hotel at KL Sentral after office hours,” she said.
Azian said she could not remember telling Azlin whether it was normal meeting anyone for a loan application outside office hours.
“I had known him based on our official engagements in the past but that was the first time meeting him at a hotel (for a loan application),” she said.
She said she met Azlin after an appointment was made by an unidentified person through her secretary.
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 KWAP.
The Pekan MP is 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.
Former KWAP vice-president Amirul Imran Ahmat had testified the fund loaned the RM4 billion after SRC director and CEO Nik Faisal Ariff Kamil submitted a two-page proposal to Najib on June 3, 2011.
Najib, who was prime minister and finance minister at the time, minuted the letter to Azian that he had sanctioned the loan application on June 5.
SRC was a wholly-owned subsidiary of 1MDB, which was under 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.
The Investment Committee disbursed RM2 billion in 2011 and another RM2 billion the following year after the federal government stood guarantee for the loans.
The hearing before trial judge Mohd Nazlan Mohd Ghazali continues.