KUALA LUMPUR: The Cabinet was kept in the dark over two additional short-term loans granted to SRC International Bhd when the company almost defaulted on repaying RM4 billion loan it obtained from the Retirement Fund Incorporated (KWAP) in 2011 and 2012.
Former prime minister Datuk Seri Najib Razak acknowledged in the High Court today that his Cabinet only "had an inkling" that the company needed extra money to the tune of RM600 million, to service its debt or risk going into default mode.
The RM4 billion debt has since snowballed to RM9.3 billion, the court heard, but Najib said he needed to verify the figures.
Najib, however, denied that SRC International's troubled finances were kept as a secret from his ministers.
"They had an inkling but they were not told about the second and third additional loans as it was under my purview," he said, when pushed by lead prosecutor Datuk V Sithambaram.
Najib said he also couldn't remember if the two government guarantees issued for SRC International to secure the RM4 billion loan had been tabled in parliament.
"I don't remember...I can't recall if it was done or not but I can check," he said, pledging to return with an answer at the next hearing.
Najib, 66, is facing seven criminal breach of trust, abuse of power and money laundering charges involving RM42 million of SRC International funds.
He faces 20 years' jail and fine, if convicted.
Today's hearing saw Najib being questioned again on his credit card spending during his Italian holiday in September 2014 when he spent about RM3.2 million buying various items, including a piece of jewellery for the wife of Qatari prime minister, Sheikh Hamad Jassim Jaber Mohammed Al Thani.
Najib said it was not he who bought the jewellery but his wife Datin Seri Rosmah Mansor.
"She picked it...I just paid for it," he said to Sithambaram's amusement who replied by saying:
"But of course, it is best to leave these kind of things to women...only they know what other women want."
Sithambaram then proceeded to question Najib about a purported letter from the Qatari side acknowledging the gift.
He asked the former Finance Minister whether the defence planned to call anyone to testify to confirm that the jewellery had indeed been given to the Qatar prime minister's wife.
Najib replied that his lawyers were looking into it.
The senior criminal lawyer then suggested that there was no such gift given to anyone but Najib disagreed.
Sithambaram also questioned Najib about additional spending for hotel stays in Bali, Bangkok, Rome and purchases from upmarket stores like the House of Bijan in Beverly Hills, Los Angeles, and other stores in New York.
Najib explained that his spending on such items "was not that significant" compared to the amount he spent on Corporate Social Responsibility (CSR) programmes using money from the Arab donation which he received.
The former Umno president has all this while maintained that he received RM2.6 billion donation from the late Saudi Ruler, King Abdullah Abdul Aziz Al Saud.
Najib was also questioned on fugitive businessman Low Taek Jho @ Jho Low's role in ensuring there was enough money in his bank accounts to prevent cheques issued from bouncing.
He was referred to Blackberry meseenger chats between Jho Low and Najib's personal banking relationship manager Joanna Yu where it was clear the Penang-born businessman discussed on moving funds into the Pekan member of parliament's accounts to ensure there were sufficient funds whenever cheques were issued.
Asked if the chats proved that Jho Low was playing a big role in ensuring that he had enough money in his accounts, Najib replied: "It would appear so."
Najib also acknowledged that he had liased with Jho Low on a few occasions concerning his AmBank accounts.
"However, it was on very few occasions," he said.
The trial before High Court Judge Mohd Nazlan Mohd Ghazali will continue on Jan 20.