NAJIB Razak’s endorsement led to the approval of a RM2 billion loan from Retirement Fund Inc (KWAP) to SRC International Sdn Bhd, the Kuala Lumpur High Court heard today.

It was not a direct order from the former prime minister, but he endorsed it, and this influenced to an extent the decision to approve the loan, testified former KWAP CEO Azian Mohd Noh.

She said a Finance Ministry advisory for SRC International to apply for the second RM2 billion loan, which was eventually disbursed on March 28, 2012, did not amount to a directive.

At the time, Najib was holding two portfolios – prime minister and finance minister – and chaired the advisory board of 1Malaysia Development Bhd, which previously owned SRC International.

During cross-examination today, Azian said the ministry advisory indicated only that it agreed that SRC International could apply for a loan from KWAP.

However, during re-examination, deputy public prosecutor Ishak Mohd Yusoff asked Azian to define the difference between “compulsion” and “influence”.

Azian: There’s no legal compulsion, but I cannot say the same that there was no influence. The letter came from the finance minister, the prime minister, the minister in charge of KWAP. He is my ultimate boss. I cannot deny there is a certain amount of influence.

Najib’s lead counsel, Muhammad Shafee Abdullah, asked the witness if this “influence” – if it had been present – was self-induced.

Azian: Whether I was compelled or whether I was influenced, I do not think it is a strange reaction when they get such a request from their superior.

Shafee: As a responsible CEO of KWAP, would you have allowed KWAP to make a wrong decision based on the issue of influence?

Azian: As CEO, my fiduciary duty is to protect KWAP and ensure they don’t suffer losses from their investments. The influence I am speaking of would be to facilitate the process of the loan.

Shafee: I’m putting it to you that you would not have made a decision that was contrary to the interests of KWAP, based on that hierarchy of influence.

Azian: Whatever influence, whatever I perceived, definitely. I would not be doing something that would breach any law or any act.

Najib, 66, faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power. If convicted, he could be jailed up to 20 years.

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

Attorney-General Tommy Thomas leads the prosecution, while Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali presides over the trial. – June 10, 2019.