THE Ihsan Perdana Sdn Bhd managing director told the High Court today he did not know Najib Razak was the recipient of RM42 million in bank transfers.

Dr Shamsul Anwar Sulaiman said had he known it was Najib, he would not have approved the transfers to the then prime minister’s personal bank accounts in December 2014 and February 2015.

Ihsan Perdana is the corporate social responsibility arm of SRC International. It had channelled RM42 million it received from SRC International for the purpose into accounts in AmBank.

“I confirm that I did not know the account holder of AmPrivate Banking – 1MY number 212-202-20188-0,” Shamsul told the Kuala Lumpur High Court today.

“I confirm that had I known that the account (ending 880) belonged to Datuk Seri Najib Tun Razak, I would not have allowed the RM27 million transaction,” he said of a transaction made on December 26, 2014. 

Shamsul, who has been on the Ihsan Perdana board since 2011, added that Najib had never contacted him regarding the RM27 million payment.

He said he had previously asked senior accounts executive Aishah Ghazali to verify the identity of the recipient account holder.

He said Aishah told him that the bank was not allowed to disclose who held the accounts.

Shamsul said he had also asked Ihsan Perdana financial director Abdul Aziz Ismail to find out who the account belonged to.

“However, he did not tell me the result of his verification,” Shamsul said under examination by the prosecution.

Dr Shamsul, who was a doctor prior to his becoming actively involved in Umno in 1998,  also corroborated Aishah’s testimony earlier today that RM50 million was paid into Ihsan Perdana’s Affin Bank account – RM40 million on December 24, 2014, RM5 million on February 5, 2015, and RM5 million on February 6, 2015. 

Dr Shamsul told the court he did not know from where the transfers originated from. Aishah testified earlier today that the money came from Gandingan Mentari, a subsidiary of SRC International. 

He said prior to the December transaction of RM40 million, he met with Dennis See Thuan Buan, who was project director at Yayasan Rakyat 1Malaysia (YR1M), for which Ihsan Perdana also carries out CSR work.

Dr Shamsul said he met See at the Ihsan Perdana office, where he was informed that the company account would be used as a “transit” stop for RM40 million. 

“I asked for further details from (See) but he did not give any further explanation and refuse to provide the details that I wanted,” Dr Shamsul said, adding he could not recall when the meeting took place. 

He said he made the bank transfer to Najib’s AmBank account ending in 880 for RM27 million in December 26, 2014, after meeting See. 

“I made the payment into the (Najib’s account) even though I was not sure of the true purpose because I was following instructions from (YR1M CEO) Ung Su Ling and (See),” he said.

Meanwhile, Dr Shamsul testified he was CSR executive director at 1Malaysia Development Bhd from  October 2010 to July 25, 2011. 

He said his appointment was endorsed by Najib and approved by the 1MDB board. 

He said then 1MDB CEO Shahrol Azral, on the instruction of Najib, told him to start up a private company to carry out CSR work for the state investor.

“The instruction was given at a 1MDB board meeting. I was not present at the meeting, but I was only informed by (Shahrol) after the meeting. I am not sure if the instruction was recorded in the minutes.”

Dr Shamsul added the 1MDB board then comprised Najib, Shahrol and Lodin Wok Kamaruddin. 

“The proposal to form a private company emerged when the 1MDB board found there was a conflict of interest, whereby it was found that it was not appropriate for 1MDB to carry out CSR work sponsored by 1MDB.

“I didn’t know why Yayasan 1MDB could not carry out CSR work directly. As far as I knew, Yayasan 1MDB could carry out CSR work directly but (it) did not because it lacked the capacity. 

Dr Shamsul said Gem Horizon was used as a “shelf company” before Ihsan Perdana was established. Dr Shamsul and Abdul Aziz Ismail became directors, each with a RM1 share, on July 25, 2011. The company eventually had 20 staff members.  

Between 2011 and 2014, Ihsan Perdana received annual grants of RM20 million from YR1M and another RM20 million from Yayasan 1MDB for CSR work. 

Dr Shamsul said Ihsan Perdana had an annual operational expenditure of RM5 million. He said it was understood that Yayasan 1MDB’s RM20 million grant was to go to CSR work in Malay constituencies controlled by Umno and Barisan Nasional.

The RM20 million grant from YR1M was to be sent on the Chinese and Indians in constituencies controlled by Umno or BN, he told the court. 

The money was spent on paying the travel expenses of imam and village elders going on the haj, repairs for the homes of the poor,  boat repairs for fisherman, and other such welfare programmes.

In addition to the RM40 million from the two foundations, Ihsan Perdana received from 1MDB/YR1M RM62 million in 2012 and RM302 million in 2013.

In 2013, in the run-up to the May general election, RM78.5 million was spent on social welfare (Nadi Kasih); RM6.5 million on Orang Asli assistance (Jalinan Murni); RM17.5 million on aid for fishermen  (Ihsan Samudera); RM9.5 million on vitamin supplements for schoolchildren (Vitamin 1Malaysia); RM22.5 million on Aidifitri programmes (Ihsan Ramadhan)’ RM6 million on the Masjid Jamek Kampung Baru project; RM582,500 on Alam-Kajang flash flood assistance; RM10 million on youth motivation (Cergas Ceria); and RM29.5 million on water supply projects in Sabah and Sarawak (Project H20). 

In 2014, the grant from 1MDB was reduced to RM17.13 million.

Finally, Dr Shamsul told the court that Ihsan Perdana was appointed as CSR partner to SRC International on September 3, 2014. He said the appointment letter, signed by SRC International directors Suboh Md Yassin and Nik Faisal Ariff Kamil, promised Ihsan Perdana a grant of RM250 million.

Dr Shamsul said he had never received a direct order from the SRC International board to carry out CSR work.

“I also wish to state that Ihsan Perdana never received the RM250 million grant from SRC (International) as stated in the appointment letter,” Dr Shamsul told the court. 

Najib is on trial for allegedly receiving RM42 million in 2014-2015, money that allegedly came from the RM4 billion in loans he helped to secure for SRC International.
He faces three counts of criminal breach of trust, three counts of money laundering and one count of abuse of power.

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

Attorney-General Tommy Thomas leads the prosecution, while Justice Mohd Nazlan Mohd Ghazali presides over the trial. – May 15, 2019.