THE SRC International Sdn Bhd trial resumes this morning with the defence continuing its cross-examination of the 30th prosecution witness, Affin Bank officer Noorhayati Mohd Yunus.

Yesterday, while cross-examined by defence counsel Farhan Read, the manager of the bank’s branch manager (services) at The Curve, Petaling Jaya, said multiple cheques for millions of ringgit were issued from SRC International subsidiary Gandingan Mentari to Mail Global Resources Sdn Bhd.

A total of RM42 million flowed from Gandingan Mentari into former prime minister Najib Razak’s accounts between late 2014 and early 2015, said Noorhayati.

RM50 million was transferred from Gandingan Mentari to SRC International’s corporate responsibility arm, Ihsan Perdana, in the same period.

The balance of RM8 million that did not go into Najib’s accounts was credited to Mail Global Resources on December 29, 2014, Noorhayati said, corroborating the testimony of Affin Bank processing officer Rosaiah Mohamed Rosli last week.

Retirement Fund Inc (KWAP) former assistant vice-president (fixed income department) Amirul Imran Ahmat, too, testified yesterday, telling the Kuala Lumpur High Court that Najib signed a government letter of guarantee on March 27, 2012 for SRC International on a RM2 billion term financing from KWAP for a period of 10 years.

KWAP received the letter from the Finance Ministry, dated March 28, 2012, providing a government guarantee to SRC International, which was endorsed at a cabinet meeting on February 8 the same year, he said.

The RM4 billion loan from KWAP to SRC International was rushed through and approved, despite the process violating Paragraph 5 of the fund’s investment policy and guidelines, he said.

SRC International received a RM2 billion loan on August 26, 2011 via four tranches of RM500 million each.

Amirul added that he was under pressure to expedite the second loan application of RM2 billion on March 28, 2012.

“This is because the loan to SRC International exceeded the equity of the shareholder, that is SRC International, which only had equity worth RM1 million, but the requests for loans amounting to RM4 billion were approved.”

There had also been violations under paragraph 2, whereby total KWAP investment in the form of loans is not allowed to exceed 10% of the allocation for domestic fixed income investments, he said.

Najib faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power over the RM42 million allegedly deposited into his accounts.

The money, said witnesses, came from a RM4 billion loan funnelled to SRC International from KWAP.

Najib is represented by a dozen lawyers, led by Muhammad Shafee Abdullah.

Attorney-General Tommy Thomas is leading the prosecution, while justice Mohd Nazlan Mohd Ghazali is presiding.

The Malaysian Insight brings you today’s proceedings live:

3.45pm: The court stands down for the day as Harvinderjit tells judge Nazlan that he needs one more hour with the witness. Nazlan says the cross-examination will continue at 9am tomorrow.

3.34pm: Harvinderjit goes through Amirul’s testimony with him. Judge Nazlan asks to continue for another 10 minutes before the court stands down for the day.

3.26pm: Najib is seen nodding off.

3.12pm: Amirul says he had never seen a single loan for more than RM2 billion before.

Harvinderjit says Amirul might not know as he left the company after three years. The latter insists that there had never been a loan that big before.

Amirul adds that the loan approval request was for the money to be paid in a lump sum.

“Anyone can apply, but in the case of approval, no.”

2.57pm: Harvinderjit asks whether the interest payment is below market value for government-guaranteed loans. Amirul says it is above market value.

2.45pm: Harvinderjit asks Amirul whether he saw Najib sign the letter approving the loans. Amirul says no.

2.35pm: Amirul says he had met Nik Faisal and Terence Geh from 1MDB on potential investments that SRC International was going to make, and investments it had made, with funds given by KWAP.

2.26pm: Harvinderjit goes through SRC International’s quarterly report with Amirul.

1.52pm: Harvinderjit said the loan repayment period was 10 years and asks if it is still in existence.

Amirul said he doesn’t know about it.

1.50pm: Harvinderjit goes through the letter of offer for the loan with Amirul, who said the KWAP loans are all shariah-compliant.

1.48pm: Court resumes with Amirul in the stand.

12.49pm: The outcome was the KWAP panel decided that the money would go to the government of Malaysia and, in return, the government will issue KWAP Malaysian government securities (MGS).

12.34pm: Amirul still denies that the RM1 billion was his recommendation.

12.20pm: Being the author of the investment paper, Amirul signed off on it for the investment panel to deliberate.

Harvinderjit pushes him again on whether the RM1 billion was his recommendation. Amirul answers quite sarcastically “Do you want a yes or no answer or what?”

12.18pm: Harvinderjit clarifies that Amirul’s proposal was only for RM1 billion, the investment panel was told that they had proposed a lower amount of financing.

Harvinderjit asks if he’s still sticking that the RM1 billion was still not his recommendation. Amirul said yes.

12.12pm: Amirul maintains that his position has always been that he never recommended the investment panel give the RM4 billion loan.

He added that he did not present his investment paper to the panel as this was done by his superior.

They are now going through the minutes of the investment panel meeting.

12.11pm: Harvinderjit asks if the proposal paper is Amirul’s own recommendation.

Amirul: it’s just prepared for deliberation and consideration.

Harvinderjit: But it says for recommendation.

Amirul: That’s just a standard header.

The exchange turns heated with Amirul saying “you asked me a question, let me answer”.

12.05pm: The initial investment of RM1 billion would have been rejected if they, the investment panel, had the choice.

Harvinderjit asks if that is Amirul’s personal opinion, to which he replied “yes, it is his personal opinion” that they would have rejected SRC International’s request.

11.53am: 1MDB denied Amirul’s request for information on its projects as the prime minister and the chairman of the board have to agree with the request first.

Amirul said he did not escalate the issue with the KWAP chief but only told his superior and is not sure if his superior then escalated this with the CEO.

11.49am: Harvinderjit is going through emails and communications that Amirul and the top brass at 1MDB had via email with regard to the investment.

11.42am: Amirul said they were only given a very general view of the SRC International investments.

He also said Nik Faisal, Terence Geh and Vincent Koh were present for a meeting with KWAP.

11.37am: Harvinderjit asks Amirul how he obtained information that SRC International was a subsidiary of 1MDB.

Harvinderjit: Was it in the paper sent (to KWAP)?

Amirul: Yes.

11.33am: In the letter, it states that KWAP chief Azian agrees with the suggestion to give the loan.

Harvinderjit: The letter would have reached the KWAP CEO, she would have then handed it over to prepare the investment panel paper.

Amirul: Yes.

Harvinderjit: The letter seeks funding for RM3.95 billion. The panel paper you prepared. It recommended a loan if RM1 billion. You were not instructed to prepare a paper for RM3.95 billion.

Amirul agrees that he was not instructed.

11.32am: Harvinderjit goes through a letter that SRC International sent to Najib and the Finance Ministry, seeking approval to get the loan.

Amirul said a copy of the letter was sent to him.

11.28am: Amirul said when a loan is approved, it is subject to the KWAP Act.

He agrees that loans can differ. He agrees that the investment panel is not bound by the investment. He agrees that the panel can choose to approve an investment in any manner it feels.

11.22am: Harvinderjit asks Amirul if he is familiar with the provisions of the Retirement Fund Act.

Harvinderjit: You know that the decision on whether KWAP invests in any particular project rests under the panel?

Amirul: There is a provision that it is within the powers of the panel.

11.15am: Amirul points out the MACC officers present today.

11.13am: Amirul said he had dictated his statement and the MACC typed it out. An MACC officer named Encik Rosli recorded the statement.

Harvinderjit: When they dictated, were questions asked or you just spoke?

Amirul: Questions were asked.

Amirul said he also met many MACC officers apart from Rosli.

11.11am: Harvinderjit Singh begins his cross-examination. He apologises to judge Nazlan for his absence yesterday.

Harvinderjit asks Amirul how many times he met with Malaysian Anti-Corruption Commission to record his statements. He said he was questioned countless times.

He recalls the first MACC meeting to give a statement in 2015.

11.09am: He is asked to identify Najib and former KWAP chief. He is also shown two pictures and asked to identify 1MDB chief Nik Faisal Ariff Kamil, which he did correctly.

11.03am: Witness No. 29, Amirul Imran Ahmat, back in the stand.

He joined KWAP in January 2011 and left in May 2014 and helped prepare the RM4 billion loan to SRC International.

10.59am: Noorhayati takes the stand. She is being questioned over transactions involving Ihsan Perdana’s accounts at the commercial bank.

Farhan Read continues his cross-examination.

10.52am: Lead defence counsel Muhammad Shafee Abdullah arrives in court.

10.30am: Najib arrives in court. He is in a khaki suit with a black and white tie. – May 7, 2019.