Najib asked for early release of RM2 billion loan to SRC, says ex-Treasury official

Former Treasury secretary-general Wan Abdul Aziz Wan Abdullah at the High Court in Kuala Lumpur today.

KUALA LUMPUR: A former Treasury secretary-general told the court in Najib Razak’s corruption and abuse of power trial today that the former prime minister had called him to request that the pensioners’ fund release a RM2 billion loan to SRC International Sdn Bhd before a government guarantee was formalised.

Wan Abdul Aziz Wan Abdullah, who was Treasury secretary-general on a yearly contract from 2008 to 2012, said Najib, who was also the finance minister, called him on March 28, 2012, requesting an early disbursement of money to the company.

He said Najib also told him that the Cabinet had agreed on Feb 8, 2012 to guarantee the loan from Retirement Fund (Incorporated) (KWAP) to SRC International.

“This was an exceptional practice as a loan is only paid out after the guarantee letter is formalised,” he said when examined by deputy public prosecutor Suhaimi Ibrahim.

Wan Abdul Aziz, who is the 45th witness in the trial, said he directed his deputy (loan management, financial market and actuary division) Maliami Hamad to write to KWAP for the release of the loan.

Maliami earlier testified that he had communicated Wan Abdul Aziz’s directive to KWAP.

He also said he had informed KWAP that the Ministry of Finance Incorporated (MoF Inc) would commit to sending the government guarantee letter within 10 days.

SRC International, which was a wholly-owned subsidiary of 1MDB, was placed under MoF Inc on Feb 14, 2012.

Witnesses from KWAP previously testified that the RM2 billion was paid to SRC International on March 29, 2012.

It was also revealed that Najib, in his capacity as finance minister, had signed the guarantee letter dated March 27, 2012, although the document was only sent to SRC International and KWAP much later.

Najib 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 KWAP.

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

The government had also provided a guarantee for KWAP to provide a RM2 billion loan to SRC International in August 2011.

The hearing continues before judge Mohd Nazlan Mohd Ghazali.