PUTRAJAYA: A major portion of a RM4 billion loan to SRC International Sdn Bhd from a government retirement fund could have been stolen, yet no police report was made, a lawyer told the Court of Appeal in Najib Razak’s corruption appeal hearing.
Defence lawyer Harvinderjit Singh said the theft could have occurred “outside the corporate structure of SRC” which was once a subsidiary of 1MDB and subsequently placed under the Finance Ministry Incorporated.
The lawyer was submitting that Najib, as then finance minister and advisor emeritus of SRC was not an agent nor entrusted with RM42 million to move the money, said to be part of the RM4 billion.
At this juncture, Judge Vazeer Alam Mydin Meera, a member of the bench inquired: “How did the SRC board make a decision on the RM4 billion?”
Harvinderjit: The SRC board knew how the money came in but did not know how it went out.
Retirement Fund Inc (KWAP), based on two government guarantees, gave the loan in 2011 and 2012 to SRC to carry out and invest in projects associated with conventional and renewable energy resources, natural resources and minerals.
In August 2011, a RM2 billion loan was released by KWAP to SRC in four separate tranches of RM500 million.
Seven months later, another RM2 billion was released in a single payment but this time RM200 million was retained for capital investment.
Harvinderjit said the RM3.8 billion was left “outside the corporate structure of SRC” and the company directors did not know about this.
“It was a theft. During cross-examination, SRC chairman Ismee Ismail and director Suboh Md Yassin did not know what happened to the money,” he said.
Vazeer: But no police report was lodged?
Harvinderjit: No. The only person who could have made the report was Suboh but he did not know about the missing money. Ismee was also shocked.
Suboh and SRC CEO Nik Faisal Ariff Kamil were the signatories of SRC but the defence contends that fugitive businessman Low Taek Jho, senior SRC management and Ambank staff conspired to remove SRC money.
High Court Judge Mohd Nazlan Mohd Ghazali in his judgment had also remarked that a significant bulk of the RM4 billion was almost immediately upon receipt transferred to accounts outside the country.
He said it now appeared to have been frozen by the relevant authorities in Switzerland. The present status is not clear.
Harvinderjit told the bench today that nobody from the government came to court to reveal the status of the money.
Najib is accused of abusing his power as prime minister by giving government guarantees on SRC International’s RM4 billion loan from the fund.
He also faced three criminal breach of trust and three money laundering charges in relation to RM42 million belonging to SRC International.
Last July, Nazlan sentenced Najib to 12 years’ jail and ordered him to pay a RM210 million fine after finding him guilty of seven corruption charges in relation to RM42 million belonging to SRC International.
Hearing was adjourned to Monday.- FMT