KWAP loans increased for SRC International because of Najib

KWAP loans increased for SRC International because of Najib

KUALA LUMPUR: Former Retirement Fund Inc (KWAP) chairman Tan Sri Dato’ Sri Dr Wan Abdul Aziz Wan Abdullah testified in court that the agency approved a loan for SRC International amounting to RM 1 billion but former prime minister Datuk Seri Najib Razak instructed KWAP to double the amount.

SRC International had originally applied for a RM3.95bil loan, but only RM1bil was approved.

Najib had made the request to him to double the amount in a meeting at the Prime Minister’s Office.

He, however, could not remember the exact date of the meeting and did not make any notes on Najib’s instructions.

“After the meeting, I informed KWAP chief executive officer Datuk Azian Mohd Noh about Najib’s instruction to rush the approval process for the RM2bil amount.

“I would like to state here that if there was no communication bet­ween Najib and me on the loan from KWAP to SRC International, the investment panel would have stuck with approving the RM1bil loan as per the consideration and approval of the panel,” he said.

To a question by deputy public prosecutor Datuk Suhaimi Ibrahim, Dr Wan Abdul Aziz said former Finance Ministry loan management, financial market and actuary division secretary Datuk Maliami Hamad knew about the phone call.

“I told him (Maliami) that Najib had ordered the Finance Ministry to issue a letter for the disbursement.

“I asked Maliami to issue the letter the same day the call was made,” he added.

The witness said it was “out of the ordinary” for a loan to be disbursed before the issuance of a government guarantee.

The extraordinary instruction was still executed because the government, through the Cabinet, had approved the loan and was its guarantor, he said, adding: “It was just a matter of waiting for the guarantee letter to be issued.”

He was testifying at Najib’s trial involving RM42 million from SRC International. Najib is facing seven charges involving SRC International. It is made up of one power abuse charge, three criminal breach of trust and three money laundering charges.