Najib tabled memos on SRC loan guarantees at Cabinet meetings, court told

Najib Razak.

KUALA LUMPUR: A government secretary in Najib Razak’s administration told the High Court today the former prime minister had tabled memorandums during two weekly Cabinet meetings seeking to give government guarantees on loans taken by SRC International Sdn Bhd.

Mazidah Abdul Majid, who served as the Cabinet’s deputy chief secretary until June last year, said during the Feb 8, 2012 meeting chaired by Najib, the former prime minister sought his Cabinet members’ approval to give a government guarantee on a RM2 billion loan taken by SRC International.

“It was a 10-year loan for SRC to fund its investments in the natural resources industry. The memorandum by the finance minister (Najib), also sought the Cabinet’s approval to give tax and stamp duty exemptions to SRC and to give a nod to the finance minister to decide on the loan’s terms,” she said, in testifying in Najib’s SRC International trial.

Mazidah said the backgrounds of 1MDB and SRC, as well as the implications to the government of the guarantees, were mentioned in the Feb 8, 2012 memorandum.

“I was there to take down minutes of the meeting. Except for Idris Jala and Ahmad Husni Hanadzlah, the other Cabinet members attended this meeting,” she said, referring to the former minister in the Prime Minister’s Department and the former second finance minister.

Among the then Cabinet ministers who attended the Feb 8 meeting were Najib’s deputy Muhyiddin Yassin, Rais Yatim, Shafie Apdal, and Mustapa Mohamed.

Muhyiddin, Rais and Mustapa are now with PPBM while Shafie left Umno to form Warisan.

Mazidah said Najib had earlier on Aug 17, 2011 tabled a memorandum at the Cabinet meeting regarding government guarantees to SRC International but that the issue was not discussed.

“The minutes of meeting were not recorded,” she 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.

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 in Jalan Raja Chulan and the Prime Minister’s Office in Putrajaya between Aug 17, 2011, and Feb 10, 2015.

Hearing continues before High Court judge Nazlan Ghazali.