FORMER prime minister Najib Razak in 2013 refused to approve a government delegation to Switzerland to find out why the Swiss authorities had frozen SRC International’s bank account containing RM3 billion due to alleged money laundering. 

Former second finance minister Ahmad Husni Mohamad Hanadzlah told the Kuala Lumpur High Court today Najib rejected his request to lead a delegation comprising officers from the Finance Ministry, the central bank and Retirement Fund Inc (KWAP) to clarify the matter with the Swiss government.

“I was told that SRC International kept its invested funds, totalling RM3 billion, in a Swiss bank (account), which was later frozen by the Swiss government for money laundering offences.”

“However, the honourable prime minister (Najib) did not give his consent for me to (take the trip),” said the 67-year-old in his witness statement.

The Swiss attorney-general’s office confirmed in September 2015 that Malaysian funds were frozen in a money laundering and corruption probe linked to 1Malaysia Development Bhd (1MDB).
 
In October the following year, the AG’s office said it was investigating transactions linked to SRC International and that some US$800 million of funds for investment in natural resources were misappropriated.

It also said a Ponzi scheme concealed the misappropriations from SRC International and 1MDB.

Husni today confirmed he signed a government guarantee letter dated August 26, 2011 favouring KWAP, three days before the first RM2 billion loan was disbursed to SRC International. 

Husni said he learnt from officers from the Minister of Finance Inc that a total of RM4 billion was disbursed to SRC International.  

The loans were for investing in coal in Java, Indonesia and natural resources in Mongolia, with the balance kept in banks in Switzerland and Hong Kong. 

Husni told the court he had attempted to take officers from the Finance Ministry and KWAP to Switzerland to check on the status of the loan, but Najib had refused his request for the trip. 

Husni said his officers’ requests for documents on SRC International and its investments were also denied.

He said he instructed former investment division secretary Mohd Isa Hussain to travel to Java to check whether the investment exists. Husni said Isa did not go.

Najib’s charges are linked to RM4 billion in loans issued to SRC International in 2011 and 2012, for which he is accused of receiving RM42 million in his accounts in 2014 and 2015.

The 66-year-old was charged with three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power. If convicted, he faces up to 20 years’ imprisonment. – August 6, 2019.