KUALA LUMPUR: A witness today agreed that the approval of a RM2 billion loan to SRC International Sdn Bhd – a company worth just RM2 at the time – was not forced down the throat of the Retirement Fund Inc (KWAP).
The witness agreed with Datuk Seri Najib Razak’s lawyer that the decision to release the money to SRC International was done entirely by the KWAP investment panel, which has the final say on such matters.
“Do you agree with me that the buck stops at the investment panel?,” lawyer Harvinderjit Singh asked the witness during a lengthy day-long cross-examination today.
The witness, KWAP vice-president of the Legal and Secretarial department Azlida Mazni Arshad, replied in the affirmative and also agreed with the lawyer’s assertion that investment panel members could have always asked for more information, documents and related material if they had any doubts about giving the loan to SRC International.
Azlida was subjected to answering numerous questions about previously-adduced evidence that KWAP had been forced to give out a RM4 billion loan in two separate applications of RM2 billion each to SRC International in 2011 and 2012.
KWAP former head of fixed income department Amirul Imran Ahmat had previously testified that the pensioners fund had been forced to loan the money to SRC International even though the company failed to provide adequate information and documents about its operations.
He had also testified that KWAP had to expedite the approval of the loan facilities despite the shortcomings in SRC International’s application.
Meanwhile, Azlida who was the 35th witness to testify in the trial – which has entered its 17th day, said she had taken down minutes of meetings involving the investment panel discussing the loan.
She agreed that the minutes did not indicate anything about the panel being forced to approve the loan.
She said the minutes also did not show any objection to the loan being granted.
Harvinderjit: Do you agree if it is not reflected in the minutes then it means it was not said in the meeting?
Azlida: Yes.
Harvinderjit: The minutes do not show that the panel members said ‘we have no choice but to approve the loan to SRC International’.
Azlida: No.
Harvinderjit: Nothing of that sort was said during the meeting?
Azlida: Agreed.
Earlier, Azlida explained in detail the processes involved from the time an application for a loan is made to its approval.
She agreed that KWAP was used to giving out loans to the federal government or its related entities.
Asked if it was the responsibility of the KWAP investment panel not to do anything which was against the best interest of the fund, she said “yes”.
“This chap called Amirul came and said a lot of things…I need to clear all this,” Harvinderjit said at one point when it became quite obvious that his questions seemed repetitive on the role and responsibilities of the KWAP investment panel.
Harvinderjit also asked Azlida about the ‘open door policy’ in KWAP where employees are encouraged to escalate issues to their superiors if they are unhappy about something.
Azlida agreed that such a policy was in place in the fund.
The trial continues.
Najib, 66, is facing seven charges of criminal breach of trust, abuse of power and money-laundering involving RM42 million linked to SRC International.
He faces 20 years’ jail and a fine for the offences if convicted.