Felcra board of directors aware of investment risk, court told in Bung’s graft case

KUALA LUMPUR: Felcra's board of directors was aware that the decision to invest RM150mil in Public Mutual Berhad's unit trusts was risky, the Sessions Court was told.

Former Felcra Bhd group chief financial officer Mohd Azmy Abu Samah, 54, however, said he requested the board of directors to consider the investment proposal when presenting it in a board meeting.

"However, the decision on the investment was not presented or discussed in the top management council meeting," he said during cross-examination by lawyer Datuk K. Kumaraendran, representing Datin Seri Zizie Izette Abdul Samad, at the corruption trial involving Kinabatangan MP Datuk Seri Bung Moktar Radin and his wife (Zizie Izette) before judge Rozina Ayob.

The 26th prosecution witness said during the presentation session, he informed the board that Felcra had RM300mil of cash to invest and asked the board to consider it.

Asked by Kumaraendran whether former Felcra CEO Datuk Ramlee Abu Bakar raised any issues during the presentation, the witness said the CEO only wanted to know the reason the unit trust investment was not brought to the council meeting.

However, Mohd Azmy said there was no objection or discussion from the board of directors regarding the investment.

Kumaraendran: Did the board continue with the investment (RM150mil)?

Mohd Azmy: Yes.

The witness also agreed with Kumaraendran’s suggestion that the RM150mil investment was made by Felcra on May 18, 2015.

He also agreed with Kumaraendran's suggestion that the board had never approved any amount to be invested by Felcra.

In the previous proceedings, Mohd Azmy told the court that the Ministry of Finance agreed to approve the RM150mil investment after three investment proposal papers were submitted by Bung Moktar.

The proceedings will continue on April 12.

On May 3, 2019, Bung Moktar, 64, pleaded not guilty to two charges of receiving bribes amounting to RM2.2mil and RM262,500 as an inducement to obtain the approval of Felcra to make a RM150mil investment in Public Mutual unit trusts.

Bung Moktar, who was the then non-executive chairman of Felcra, allegedly received the bribes from Public Mutual investment agent Madhi Abdul Hamid through Zizie Izette at the Public Bank branch in Taman Melawati here between 12.30pm and 5pm on June 12, 2015.

He also pleaded not guilty to receiving cash bribes of RM335,500 from unit trust consultant Norhaili Ahmad Mokhtar under Zizie Izette’s name for the same reason at the same place on June 19, 2015.

Zizie Izette, 44, pleaded not guilty to three charges of abetting with her husband on the matter at the same place, date and time. - Bernama