In the dark over KWAP’s RM2 billion indirect loan for SRC
KUALA LUMPUR: Retired finance ministry officer Maliami Hamad testified that he was kept in the dark over Retirement Fund Inc’s (KWAP) decision to loan RM2 billion indirectly via 1MDB or the government.
This seems to be the case even though then Treasury secretary-general Wan Abd Aziz Wan Abdullah and deputy Nurzirah Bahari sat on a KWAP investment panel meeting on July 19, 2011, when the decision was made.
Cross-examined by defence lawyer Farhan Read, Maliami said that he never knew that KWAP reached that decision, even when he first met SRC International representatives on Aug 12, 2011.
In that meeting, the SRC International representatives discussed its application for a government guarantee on the first RM2 billion tranche of its loan from KWAP.
The witness says he also did not know that the Finance Ministry chose to go with the second option – for KWAP to loan RM2 billion to the government, which would in turn loan it to 1MDB.
SRC International was a subsidiary of 1MDB at the time.
Farhan: But it is stated here (referring to meeting minutes), that the Finance Ministry had chosen option B for MGS (Malaysian government security).
Maliami: I did not know about this proposal.
Farhan: If this is true, which division would be responsible to look into this option?
Maliami: Finance Loan Management Financial Markets and Actuary Division (Maliam’s division).
Farhan: But you were not involved?
Maliami: I did not know about this. And I was involved (in preparing) MGS.
Farhan: It seems that these matters were known to Treasury secretary-general and Nurzirah?
Maliami: Correct.
Farhan: They did not discuss this with you before your meeting (with SRC International)?
Maliami: No.
Maliami was testifying at former prime minister Datuk Seri Najib Tun Razak’s trial.
Najib is facing seven charges: one power abuse, three money laundering and three criminal breach of trust cases involving RM42 million from SRC International.
By K Pragalath
