Najib signed guarantee letter for RM2bil loan to SRC, court told

  • Nation
  • Monday, 06 May 2019

KUALA LUMPUR (Bernama): The High Court here was told that Datuk Seri Najib Razak signed a government letter of guarantee (LOG) for SRC International Sdn Bhd on a RM2bil financing from Retirement Fund Incorporated (KWAP) for a period of 10 years.

KWAP former assistant vice-president (Fixed Income Department) Amirul Imran Ahmat, 39, while reading out his witness statement, said the letter was signed by Najib who was then prime minister and finance minister on March 27, 2012.

In his testimony on Monday (May 6), Amirul Imran said KWAP received a letter from the finance ministry dated March 28, 2012, which was an approval by the Malaysian government to provide a guarantee to SRC, as had been endorsed at a Cabinet meeting on Feb 8, 2012.

"This letter also requested consideration from KWAP to channel the sum in advance, with the finance ministry pledging to submit the government guarantee within 10 days,” he said during examination-in-chief by deputy public prosecutor Datuk Ishak Mohd Yusoff on the 13th day of Najib's trial.

Ishak: What is the Letter of Guarantee for?

Witness: The letter from the finance ministry was to state that it agreed to provide guarantee to SRC for the RM2bil loan.

DPP: Is it normal or not for people who borrow money to get it in advance prior to a letter of guarantee?

Witness: Never happened before.

DPP: Was it the first time this happened?

Witness: Yes.

Amirul Imran, who is currently a vice-president (Fixed Income) at SME Bank, said KWAP subsequently received a "Form of Utilisation Notice", which was a loan withdrawal application by SRC to KWAP, detailed with SRC's account number, 211-202-201065-0 in AmIslamic Bank Bhd.

"On March 28, 2012, I was informed by Amirah Muhamad Nor from KWAP's Investment Support Services Department that additional financing of RM2bil had been withdrawn by KWAP and credited into SRC's account,” he said.

The 29th witness said KWAP approved the loan in March 2012 during an Investment Panel meeting headed by Ahmad Norhisham Hassan.

Amirul Imran further testified that the additional RM2bil was intended only for investment in natural resources and working capital and not for general investment.

"The loan from KWAP was not to be used for corporate social responsibility as social, charitable or political purposes were not stated in the loan agreement.

"The RM2bil was also not meant for investment in fund management or in an asset management company, in or outside the country for profit,” he said.

Najib, 66, faces three counts of criminal breach of trust, one charge of power abuse and three counts of money laundering involving SRC funds totalling RM42mil.

The trial presided by Justice Mohd Nazlan Mohd Ghazali resumed at 1.50pm. – Bernama
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