MyEG paid RM9.6 mil to law firm, says senior officer

Former prime minister and home minister Ahmad Zahid Hamidi (centre) at the Kuala Lumpur High Court this morning. (Bernama pic)

KUALA LUMPUR: A senior management staff from e-service provider MyEG Services Bhd told the High Court in Ahmad Zahid Hamidi’s corruption trial that his boss instructed the company to pay RM9.6 million to a law firm linked to the former deputy prime minister’s case over a two-year period.

Chief financial officer Chong Chien Meng said the RM9.6 million, made through 16 cheques, was a “director’s loan” to Mohd Jimmy Wong Abdullah, a member of MyEG’s board of directors.

The payments were made from May 13, 2016 to March 26, 2018.

“He told me to issue the banker’s cheques under the name of law firm Lewis & Co.

“I assumed it was payment for a legal case, so I put it down on the bank draft document,” Chong told deputy public prosecutor Harris Ong.

Harris asked Chong why he did not put Wong’s name in the banking documents since the witness had said the RM9.6 million was a loan.

“If we put it as a loan for Datuk Jimmy, then it would not tally with the recipient’s name (Lewis & Co),” the witness replied, adding that he recorded the RM9.6 million as a “director’s loan”.

Chong also told the court he did not question Wong on why he needed that sum of money from MyEG.

“This was something personal. He later paid back the loan to the company,” he said.

To a question from Zahid’s lawyer, Hamidi Mohd Noh, on whether the company’s auditors raised any issues on the “director’s loan”, Chong said they did not.

Co-counsel Ahmad Zaidi Zainal then asked Chong about MyEG’s announcement on Oct 19, 2018 that its directors had never made any payments to third parties to secure government contracts.

“MyEG came out and said they were not involved in giving kickbacks on whatever projects you obtain?”

“Yes,” Chong said, explaining that the Bursa announcement was meant to clarify media reports that linked MyEG to Zahid’s corruption charges.

He also said the company launched a domestic inquiry to confirm the authenticity of the media reports.

The prosecution had contended that Zahid received RM13.3 million from a company, Mastoro Kenny IT Consultant and Services, to help MyEG secure its projects

MyEG provides a wide range of government services including those related to the traffic police, the National Registration Department and the Immigration Department.

Zahid is facing 47 charges of criminal breach of trust involving family-run Yayasan Akalbudi’s funds. He is also accused of money laundering as well as accepting bribes for various projects during his tenure as home minister.

The hearing before High Court judge Collin Lawrence Sequerah continues on July 14.

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