THE AmBank senior official who helped Najib Razak open his bank accounts ended up serving on the Retirement Fund Inc (KWAP) investment panel that later approved RM4 billion in loans to SRC International Sdn Bhd, the court heard today.

Former AmBank group managing director Cheah Tek Kuang, 72, testified that he was on the investment panel that approved the first loan of RM2 billion to SRC International that was disbursed on August 29, 2011.

He told the Kuala Lumpur High Court that he attended a specially convened meeting on July 19, 2011 to go over and deliberate on a proposal by KWAP’s fixed income department to issue the loan.

It was at this meeting that KWAP chief executive Azian Mohd Noh said the former prime minister had urged KWAP chairman Wan Abdul Aziz Wan Abdullah to expedite the approval of the loan.

Cheah said the total loans required a government guarantee before they could be approved, due to SRC International’s paid-up capital of just RM2.

He corroborated previous testimonies that the first loan was for investment in natural resources and related industries, and not anything else.

He submitted the reply forms, approving the exemption of KWAP guidelines for the loan, on August 22, 2011.

Cheah also attended a panel meeting that approved the transfer of ownership of SRC International from 1Malaysia Development Bhd to Minister of Finance Inc.

“In my experience as a member of the KWAP investment panel, the two separate loans given to SRC International, amounting to RM4 billion, made up one of the largest loans ever agreed to and approved by KWAP.”

Cheah did not attend the investment panel meeting that approved the second RM2 billion loan to SRC International, which was disbursed on March 28, 2012.

The charges against Najib 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.

He faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power. The 66-year-old faces up to 20 years’ imprisonment upon conviction.

Najib is represented by a dozen lawyers, led by Muhammad Shafee Abdullah. Attorney-General Tommy Thomas leads the prosecution, while justice Mohd Nazlan Mohd Ghazali presides.

The trial continues tomorrow morning. – July 17, 2019.