THE prosecution’s 56th witness, former second finance minister Ahmad Husni Mohamad Hanadzlah returns to the witness stand as Najib Razak’s SRC International trial enters its 49th day today.

Husni is expected to be questioned on his claim that he was not aware of the goings-on at SRC International despite having attended at least four high-level meetings with the board and other senior government officials.    

He is also expected to be cross-examined on his testimony on Tuesday when he criticised Najib for allegedly discouraging questions on SRC International’s management and that of 1Malaysia Development Bhd.

Lead defence counsel Muhammad Shafee Abdullah had several times objected to Husni’s testimony, questioning its relevance to the trial.

The defence also received permission from high court judge Mohd Nazlan Mohd Ghazali to adjourn the hearing early on Tuesday to allow the defence to prepare its cross-examination.

On Tuesday, Husni told the court that Najib refused in 2013 to approve a government delegation to Switzerland after Swiss authorities had frozen SRC International’s RM3 billion in a bank there because of alleged money-laundering.

Najib rejected Husni’s request to lead the delegation comprising officers from the Finance Ministry, Bank Negara and Retirement Fund Inc (KWAP) to clarify the matter with the Swiss government, the court heard.

In October 2016, the Swiss Attorney-General’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 said he learnt from officers from the Minister of Finance Inc that RM4 billion in 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 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 didn’t go.

The then second finance minister, now a retired politician, told the court that Najib not only disregarded his concerns, he even ticked him off.

Husni, 67, said he opposed the 1MDB-PetroSaudi International Ltd joint venture and he told Najib in 2009 that 1MDB did not have the expertise in the field of oil and gas.

Najib allegedly replied, “You don’t worry… From today onwards, I don’t want you to interfere in 1MDB.”

Husni also highlighted the “autocratic elements” in the management of SRC International and complained that the government guarantee to obtain the first loan of RM2 billion should have gone through him in his official capacity.

“Why not? That’s why I say, I was just like an office boy when the decision was made,” Husni told the court.

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 personal accounts in 2014 and 2015.

The 66-year-old is charged with three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power.

The former prime minister is represented by a dozen lawyers led by Muhammad Shafee Abdullah while Attorney-General Tommy Thomas leads the prosecution.

The Malaysian Insight brings you today’s proceedings live:

3.50pm: Court resumes. Sithambaram tells Nazlan that the last witness will be MACC investigating officer Rosli.

Sithambaram is seeking an adjournment for today to give them time to sort out 600 exhibits with the defence.

Nazlan adjourns court to 10am tomorrow.

3.36pm: Husni is released from the stand. Judge allows a 10-minute recess.

3.32pm: Husni says he stayed away from involvement because Najib told him to do so.

He says although he signed memoranda, it doesn’t mean he was involved.

He says 1MDB and SRC International were never spoken about. 

3.29pm: Husni says it’s the joint responsibility of all ministers to debate and go over memoranda.

3.10pm: Prosecuution re-examines Husni.

Husni says he had thought about resigning for a year. He says he had wanted to solve the high-gearing (high ratio of debt to equity) of 1MDB. He says that he didn’t want to do it after a while, but was persuaded to stay on.

3.06pm: Shafee: Can you blame the PM for the misconduct of Nik Faisal? 

Husni: I cannot say, but if you want me to say longer. 

Shafee: No, no don’t, please don’t.

Shafee ends his cross-examination.

3.05pm: Shafee asks Husni If he was aware that Najib was never invited to a SRC International board meeting.

Husni says having an adviser emeritus on a board of directors is very unusual. 

3.02pm: Shafee goes in to Nik Faisal. Husni says he didn’t know about Nik Faisal. He says Nik Faisal came to see him once and didn’t see him again after that.

Shafee suggests that Nik Faisal was recalcitrant.

2.57pm: In a message to another person, Husni denies threatening to “expose” Najib.

2.36pm: Husni agrees  Najib did not show animosity when asking him to stand for the Tambun seat.

2.34pm: Husni says he was asked to defend his parliamentary seat of Tambun in the 2018 general election.

2.32pm: Shafee asks whether Husni left all his posts because he was upset, to which Husni replied in the negative.

2.31pm: Shafee: When you left, you were quite upset? Do you agree?

Husni: I don’t agree.

Shafee: You not only left your cabinet post, but every post in Umno? 

Husni: Yes. 

2,26pm: Proceedings resume with Husni back on the witness stand.

12.40pm: Court breaks for lunch.

12.34pm: Husni says he tried to help recover the SRC International funds in Switzerland. He says he had contacts with Swiss ministers and could use them to try and help.

12.29pm: Husni says although Najib told him to stay out of 1MDB and SRC Interantional matters, he still kept an eye on it and was involved.

12.16pm: Husni calls Najib an autocratic leader. Shafee cuts him off. Husni then addresses Nazlan and said he wants to explain a little more.

Shafee tells Husni this is not Parliament and that he should answer the questions.

11.59am: Husni said for the first RM2 billion loan, he didn’t know Najib had signed it off, as he was supposed to do it as the finance minister II.

11.43am: Husni said he was overseas when that paper was tabled, adding that he only checks  memorandum papers he has to sign.

SRC International is not under his purview, Husni tells court.

11.39am: Shafee goes through the cabinet paper on the RM2 billion KWAP loan.

11.20am: Court takes 10-minute break.

10.56am: He said he raised objections to PM more than 20 times. He said that it was as good as raising it at cabinet meetings.

10.53am: Husni said he could have raised an objection. But it was a different circumstance in politics. He said he could’ve raised objections to the RM2 billion KWAP loan.

Shafee: Don’t you think your views ought to be brought up with the cabinet and not the PM directly?

Husni: If I raised it in cabinet, it would give the people the perception is different. You give the PM the full power so I brought it up to him. Why must I talk to them?

Shafee asks if he’d ever heard of collective responsibility. Husni hits back: “You are not in politics, you do not know anything.”

10.48am: Shafee asks if there is any documentation about him raising objections directly with the PM. Husni said “no”.

10.45am: Husni said when memorandums from cabinet meetings come to him, there are too many and too little time to read them all out.

He always requested for the memos earlier so he could go through them with a fine toothcomb. But that never happened.

10.17am: Nazlan said Shafee’s questioning is of a scandalous nature and tells him that there shall be no further questions on this area.

Cross-examination continues with Shafee asking Husni about his role as a finance minister.

Husni replied that when he gets memos, he would always correct them. If those issues pertain to the PM, he would meet him personally.

Husni said he met the PM more than 20 times to convey his disagreements.

10.14am: Sithambaram said Shafee is trying to discredit the witness.

Before Sithambaram objected, they touched on sexual harassment reports lodged against Husni.

10.10am: Shafee accuses the witness of having an axe to grind and wants to ascertain why he is so angry.

10.09am: Shafee tells Nazlan that the witness seems like an angry man and questions about his personal life is to establish credibility of the witness.

Earlier, V. Sithambaram objected to Shafee’s line of questioning as it is not relevant to the charges.

10.06am: Husni said he resigned in 2016 of all his posts “to cover up for Najib” and this scandal.

9.31am: Former second finance minister Ahmad Husni Mohamad Hanadzlah takes the stand. Cross-examination begins. – August 8, 2019.