THE application for a RM3 billion grant for SRC International to invest in resources such as coal and iron was a serious proposal and not a “harebrained” idea, Najib Razak’s defence told the Kuala Lumpur court today.

During cross-examination of a former Economic Planning Unit (EPU) senior officer, lead defence counsel Muhammad Shafee Abdullah pressed the witness to agree that the proposal was sound.

Shafee referred to an August 24, 2010 letter from 1Malaysia Development Bhd managing director Shahrol Azral Ibrahim Halmi addressed to Najib and the finance ministry, asking for a RM3 billion loan.  

The money would be used to invest in coal, oil and gas, steel, aluminium and uranium businesses.

Kamariah Noruddin, who was deputy director-general (macro) in the EPU,said the unit was tasked with economic planning, to which government agencies may refer, for the development of projects related to investment.

Shafee said the letter was a serious proposal.

“They (the government) had taken up several resources which they thought was strategic and possibly affecting security of the nation. 

“This proposal was seriously considered… there was internal discussion to consider the proposal. 

“This proposal from 1MDB is not some harebrained scheme. It was a serious proposal,” Shafee said.

Kamariah replied that it was a serious proposal if it had been submitted to the prime minister, and later to the EPU.

She said with regard to the iron and steel business, EPU believed it should be left to the private sector.

She agreed that a government grant meant there is no expectation that the money will be returned.

Kamariah reiterated that the EPU cannot approve a grant for RM3 billion, arguing it would be “negligent” as it represented 7% of its annual development budget of RM42 billion. – May 2, 2019.