FORMER prime minister Najib Razak signed a letter approving a RM3.95 billion loan request from 1Malaysia Development Bhd (1MDB) for its subsidiary, SRC International, a senior officer from Retirement Fund Incorporated (KWAP) testified today.

Najib signed the letter, dated June 3, 2011, to KWAP approving a RM3.95 billion loan from the government pension fund to SRC International, said Amirul Imran Ahmat, who was assistant vice-president at the KWAP fixed income department in 2011-2014.

1MDB was at the time fully owned by the finance ministry, then headed by Najib. 

“On the letter were handwritten words as well as the signature of the prime minister, who was then Datuk Seri Najib, directed at the (KWAP) CEO (Azian Mohd Noh), stating ‘Agree with this proposal’ (Bersetuju dengan cadangan ini),” Amirul said.

“I can recognise his handwriting and signature because I am used to seeing his handwriting and signature because I have been working a long time at KWAP and I was convinced this was Datuk Seri Najib’s handwriting and signature.”

KWAP approved a RM2 billion loan to SRC International in 2011 and another RM2 billion the following year.

Amirul testified that he received a copy of a letter from SRC International, dated June 3, 2011, from the late director of KWAP’s fixed income department Ahmad Norhisham Hassan.

The letter was an application, from SRC International and addressed to Najib, for a RM3.95 billion loan for working capital and unrestricted general investment.

“I have only been able to receive a copy of the letter and I don’t know where the original is.

“I recognise the letter, dated June 3, 2011 and I confirm that this is a copy of the SRC letter dated June 3, 2011 that I am speaking of.”

Amirul testified that SRC International director and CEO Nik Faisal Ariff Kamil emailed him on July 1, 2011, saying that 1MDB cannot disclose details of investments or cash flow of the company as it had not obtained approval from chairman of the board, which at that time was Najib.

He added he was then instructed by Azian to prepare a proposal for an RM1 billion loan for working capital and general investments. This proposal would have to go through the KWAP investment panel, Amirul said.

His superiors later told him that the panel had decided to postpone the loan approval as they needed more information on SRC International.

Amirul was then told to come up with a proposal for a RM2 billion loan for the panel’s consideration.

On July 19, 2011, KWAP’s investment panel approved the RM2 billion loan for SRC International, made on a government guarantee.  

On August 12, 2011, a request was made to Azian by SRC International that the money be wired into SRC International’s company account, as it already had government backing via 1MDB.

On August 22, 2011, KWAP also received a letter from the Finance Ministry on the government guarantee for the RM2 billion for 10 years, said Amirul.

The loan was approved on August 26, 2011.

KWAP is a public services pension fund with a total fund size of RM140.8 billion, according to its website.

Meanwhile, witness Wedani Senen, 45, remittance department manager at the AmBank head office in Kuala Lumpur, told the court on Tuesday that the money was transferred into two SRC International company current accounts.

She had confirmed RM2 billion was credited into current account number 211-202-200973-6 via four transfers of RM500 million each on August 29, 2011, about seven months after the account was opened on January 28, 2011.

She also said a single transfer of RM2 billion was credited into current account number 211-202-20165-0 on March 28, 2012, about four months after the account was opened on November 10, 2011.

The previous government said SRC International was formed to identify and invest in natural resources and mineral ventures, including acquisition of stocks or company securities.  

Of the RM4 billion funnelled into SRC International, RM42 million eventually made its way into Najib’s bank accounts.

Najib faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power over those funds.  

He is represented by a dozen lawyers led by prominent legal figure Shafee Abdullah.

Attorney-General Tommy Thomas leads the prosecution while Justice Mohd Nazlan Mohd Ghazali is presiding.

The trial continues on Monday. – May 2, 2019.