NAJIB Razak’s SRC International trial enters its 15th day today, with the defence continuing its cross-examination of the 29th witness, former Retirement Fund Inc (KWAP) assistant vice-president (fixed income department) Amirul Imran Ahmat.

Yesterday, Amirul told the Kuala Lumpur High Court that he did not recommend that KWAP lend a total of RM4 billion to SRC International, adding that the loans violated the public services fund’s investment policy and guidelines as the amount was too large.

An application for a RM3.95 billion loan by SRC International on June 3, 2011 was reduced to RM1 billion by KWAP in an investment paper that Amirul authored.

The proposal was handed to Amirul’s superior, the now deceased fixed income department director Ahmad Norhisham. Ahmad presented it to KWAP’s investment panel, which raised the amount to RM2 billion. 

SRC International later received a RM2 billion loan on August 26, 2011 in four tranches of RM500 million each.  

Amirul maintained that the loans given to the former 1Malaysia Development Bhd unit amounted to offences, as they violated the fund’s investment policy and guidelines.

When examined by the prosecution yesterday, Amirul maintained he was under pressure to expedite the second loan application of RM2 billion on March 28, 2012, despite the first loan having already breached paragraph 5 of KWAP’s investment policy and guidelines.

He said the loan to SRC International exceeded the equity of the shareholder – that is SRC International, which only had equity of RM1 million but the requests for loans amounting to RM4 billion were approved.  

Amirul also maintained there was a breach in paragraph 2, whereby total KWAP investment in the form of loans is not allowed to exceed 10% of the allocation for domestic fixed-income investments.  

Najib faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power over the RM42 million he allegedly received into his personal accounts in 2014 and 2015.

The money, witnesses testified, originated from RM4 billion in loans funnelled to SRC International from KWAP in 2011 and 2012. 

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

Attorney-General Tommy Thomas is leading the prosecution while justice Mohd Nazlan Mohd Ghazali is presiding.

The Malaysian Insight brings you today’s proceedings live:

3.35pm: Court stands down and will resume at 8.45am tomorrow.

3.33pm: Shafee asks witness for the account opening forms of Putra Perdana Construction, Putra Perdana Development and Permai Binaraya. Halijah says she will bring them tomorrow.

Shafee: Yang Ariff, I ask the witness to be released so that she can go back and secure the documents.

3.30pm: Prosecutor Sulaiman Kho ends verifying transactions, and lead defence counsel Shafee begins cross-examination.

3.19pm: Halijah confirms another transaction on December 12, 2014, transferring RM30 million from Putra Perdana Development (Acc No: 014011546000) to Putra Perdana Construtions Sdn Bhd (Acc No: 014011327183).

3.14pm: Halijah confirms a December 12, 2014, instruction to transfer RM110 million from Putra Perdana Development (Acc No: 014011546000) to Putra Perdana Construtions Sdn Bhd (Acc No: 014011327183). She confirmed the transaction based on debit advice and that it ocurred on the same day.

2.59pm: Permai Binaraya Sdn Bhd orders transfer of RM30 million on January 7, 2015,  from acc no. 514012042754 to SRC International (Acc No: 2112022010650). Transaction occured on the same day via cheque no: 718602. 

2.53pm: Maybank was intstructed on July 14, 2014, to transfer RM5 million from  Permai Binaraya Sdn Bhd (Acc No: 514012042754) to Putra Perdana Development (Acc No: 014011546000).

Halijah confirmed the transaction based on debit advice. Transaction done on the same date.

2.44pm: On July 8, 2014, RM27 million was transferred from Permai Binaraya Sdn Bhd (Acc No: 514012042754) to Najib’s “880” account (Acc No: 2112022011880). Halijah says the bank received an instruction by fax on July 8, 2014. The hard copy letter was received on July 10, 2014. She says the sum was transferred back to Permai Binaraya on December 29, 2014.

2.32pm: In another instruction letter dated January 7, 2015, Putra Perdana Construction Sdn Bhd instructed Maybank to transfer RM3 million to Permai Binaraya Sdn Bhd. 

Halijah confirma from the debit advice that the transaction took place on the same date. That transaction was from Putra Perdana Construction Acc No: 014011327183 to Permai Binaraya Acc No: 514012042754.

2.21pm: Halijah confirms that Putra Perdana Construction transferred RM140 million to SRC International on December 12, 2014. This transaction was made from Putra Perdana Construction’s Maybank account (014011327183) to SRC Internationl’s Ambank account (2112022010650) via cheque (No: 089042).

2.11pm: Halijah says Maybank received an instruction letter from Putra Perdana Construction on July 31, 2014 to, transfer RM30 million to Putra Perdana Development.

The transaction was made on August 11, 2014. The transfer was made from Putra Perdana Construction (Acc No: 014011327183) to Putra Perdana Development (Acc No: 014011546000).

2.04pm: Halijah confirms that a debit advice was received from Putra Perdana Construction Sdn Bhd on July 14, 2014, to transfer RM105,000,002 to Putra Perdana Development.

1.58pm: Court resumes after break with Halijah continuing her testimony.

1pm: Shafee requests for a break. Judge Nazlan said it’s not time for a break yet.

Shafee tells Nazlan that prayers start at 1.10pm. Nazlan replies that the mosque is just across the road, before allowing for 30-minute recess.

12.53pm: Halijah said there was an order by fax to transfer RM34.99 million from Putra Perdana account no 014011327183 to Permai Binaraya Sdn Bhd account no. 514012042754 on July 8, 2014.

12.45pm: Prosecution’s Sulaiman Kho questions witness on the process of debit and transfer of funds from account holders. 

Halijah verifies Permai Binary Sdn Bhd’s account statement for the July 2014-December 2015 period. The prosecution’s lawyer, Sulaiman Kho, questions the witness on account holders’ debit and transfer of funds.

She said clients usually instruct the bank on such transactions, and the order can be in the form of a fax or letter.

12.27pm: Halijah is questioned about Putra Perdana Sdn Bhd’s bank account no. 014011327183, and is verifying its bank statement for the January 2014-December 2015 period. She reads a statement for the July 2014-January 2015 period.

12.22pm: Halijah Abdul Wahab, Maybank assistant branch manager, called to the stand. She is the 31st witness. Her job involves, among others, opening accounts for individuals and companies.

11.58am: Sithambaram requests a 10-minute break. Judge Nazlan grants it.

11.53am: Harvinderjit keeps asking Farhan about the investigation of suspicious transactions.

DPP V. Sithambaram interrupts and ticks off Harvinderjit for asking the same question too many times.

11.46am: Farhan said he was only aware of the Blackberry phone and nothing about the Samsung.

Shafee ends his questioning and Harvinderjit takes over.

11.41am: Shafee asks Farhan about the need to recover phones during the raid conducted by Bank Negara in 2015.

Farhan said he is unsure as it wasn’t for his investigation.

Shafee then asks if he is aware that two phones (a Blackberry and Samsung) were taken during the raid.

Farhan said he isn’t sure.

11.26am: Shafee asks Farhan to verify some documents and confirm which is a search paper.

11.01am: Shafee said if AmBank had done its job to alert Bank Negara on the suspicious transactions, then his client (Najib) would have been alerted, too, thus making him aware of those transactions.

Shafee: Are you aware whether your department or any other department carried any additional investigation to determine if the transactions were suspicious?

Farhan: No.

Shafee reiterates that if AmBank had reported the suspicious transactions, then his client would have been alerted and the entire situation could have been avoided.

Farhan replied “no comments”.

10.55am: Shafee asks Farhan about the process Bank Negara’s investigation team deploys when a suspicious transaction is detected.

10.42am: Harvinder is done with questioning Farhan. Shafee takes over now.

10.36am: Harvinderjit said AmBank was fined directly based on Farhan’s findings.

Harvinderjit: Can you tell me why?

Farhan: The offence is failure to submit proper transaction reports on Najib’s account.

Harvinderjit: Which year?

Farhan: It is basically throughout the time the account opened and closed. We looked at all the transactions.

10.22am: Witness Amirul is released and Ahmad Farhan Sharifuddin, Bank Negara investigating officer and witness No. 4 back in the stand.

10.18am: Ishak asks Amirul if throughout his time with KWAP, were there other companies which managed to obtain a loan like SRC International without providing sufficient documents.

Amirul said no.

10.11am: Ishak Mohd Yusoff re-examines Amirul.

10.09am: Harvinderjit ends his cross-examination, saying he has no further questions for Amirul.

9.50am: Court takes a short break.

9.20am: Court in session. Amirul is back in the witness stand and Harvinderjit Singh continues his cross-examination. – May 8, 2019.