KUALA LUMPUR — May 2, 2019: Former prime minister Datuk Seri Najib Tun Razak agreed with a loan application of RM3.95 billion submitted by SRC International Sdn. Bhd. in June 2011 to Kumpulan Wang Persaraan Diperbadankan (KWAP) to be used as revolving capital and unlimited general investment.
A witness came to this conclusion when referring to a letter addressed to the KWAP chief executive officer that had the note “Bersetuju dengan cadangan ini” (Agree with this proposal) in Najib’s handwriting and also his signature.
“Based on my understanding, the remark meant that the prime minister agreed for KWAP to give the loan. I could recognise Datuk Seri Najib’s handwriting and signature because I was used to seeing them while with KWAP,” said its former assistant vice-president (fixed income), Amirul Imran Ahmat during the trial of Najib for allegedly misappropriating RM42 million belonging to SRC International.
The letter was signed by former SRC CEO Nik Faisal Ariff Kamil. SRC then was wholly-owned by 1Malaysia Development Berhad, which in turn was wholly owned by Minister of Finance Incorporated.
Amirul also sent an email to Nik Faisal’s office to supply the necessary documents.
The witness testified that in 2011 KWAP approved a loan of RM2 billion to SRC, followed by another RM2 billion in 2012.
He said KWAP was allowed to give loans to the federal or state government or authorities which the federal government had interests in and also companies, according to terms that benefitted KWAP.
Borrowers had to submit their application by enclosing all supporting documents and working papers. The Fixed Income Department will evaluate all applications before these are tabled to the Investment Committee chaired by the CEO.
After the Investment Committee approves the proposal, a working paper will be prepared and submitted to the Investment Panel for a decision, explained Amirul. — Bernama