KUALA LUMPUR — July 9, 2019: Former prime minister Datuk Seri Najib Razak signed a draft memorandum concerning SRC International Sdn. Bhd. on the bonnet of his car in February 2012 after being approached by a senior officer from the finance ministry at the Subang RMAF base..
The memo was brought to him by Datuk Mat Noor Nawi, formerly a deputy secretary-general (policy). On being shown the document, Najib studied all four pages, made notes on the first and signed it off.
The document was on the transfer of SRC from its parent company and government investment arm 1Malaysia Development Berhad to the Minister of Finance (Incorporated).
Najib, 66, is charged with criminal breach of trust, abuse of power and money laundering involving RM42 million from SRC.
Prior to meeting Najib, Mat Noor was informed by 1MDB officer Zahid Taib that Najib wished to see the document.
According to Mat Noor, Zahid was the government’s liaison officer who served as the go-between for 1MDB in many matters and also had dealings with Mat Noor when the latter was with the Economic Planning Unit.
In response to a question, Mat Noor replied that to his knowledge, the transfer of SRC took place without prior due diligence and he didn’t know why it was so in this case.
In a previously signed agreement, the purpose of the loan was stated as general investment and working capital but SRC then amended it to include revolving capital.
“What happened was we were having a problem to issue a letter of guarantee because the letter and the terms of the loan agreement must be the same,” said Maliami in answer to lawyer Farhan Read for Najib.
The problem persisted until his side made amendments through the Memorandum of Ministers (MJM).
“Once the Cabinet approved, we were able to make a decision. Based on the MJM, SRC International insisted on inserting revolving capital as an aim of the loan,” he said.
Hearing before Justice Mohd. Nazlan Mohd. Ghazali continues tomorrow. — Bernama