NAJIB Razak had dismissed red flags on 1Malaysia Development Bhd (1MDB) and SRC International’s management raised by Ahmad Husni Hanadzlah, who said he was treated like an “office boy” for his troubles, the court heard today.

The then second finance minister, the prosecution’s 56th witness, told the Kuala Lumpur High Court that Najib had not only disregarded his concerns, the former prime minister had even told him off.

Husni, 67, said he met Najib in 2009 and told him that a feasibility study needed to be carried before starting 1MDB and that it would normally take years.

Najib allegedly replied to Husni, “I know what I’m doing.”

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

He said Petronas would be more suited, adding that 1MDB was relatively new in the field and that if no oil was found, the entity would be “finished”.

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

Husni also said Retirement Fund Inc (KWAP)’s first loan of RM2 billion to SRC International, which was eventually, disbursed on August 29, 2011. 

“There are autocratic elements in SRC International, its business and its direction,” he said. 

The witness said the loan approval process 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.

Husni referred to a letter to Nor Mohamed Yakcop, a former minister in the Prime Minister’s Department in charge of the Economic Planning Unit.

Husni said he lamented to Nor Mohamed of the difficulty in obtaining information from the officers of SRC International, particularly its CEO Nik Faisal Ariff Kamil. 

He told the court that he had never received any information regarding SRC International, 1MDB and its predecessor Terengganu Investment Authority.

Husni then accussed Najib of being behind the decision to approve a government guarantee for the RM2 billion loan to SRC International.

“Why do I say that? Because, My Lord, even the Bank Negara governor comes to see me. And she is much higher (in rank) than the SRC CEO,” he told the court.

Husni said his job required him to routinely meet the Bank Negara governor, executives from banks and Petronas as well other industry captains, such as former Bursa CEO Tajuddin Attan and former Prasarana CEO Azmi Abdul Aziz.

“But in this case, I could not meet the SRC officers. This one (Nik Faisal) couldn’t come when I summoned him… They told me, ‘We report only to the finance minister (Najib)’,” he said. 

In his witness statement, Husni said he learned from officers from the Minister of Finance Inc that a total of RM4 billion was disbursed to SRC International.  

The loans were for coal investments in Java, Indonesia, natural resources in Mongolia, with the balance kept at 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 he was also refused documents SRC International and its investments, despite requests from his officers from the entity. 

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

Meanwhile, lead defence counsel Muhammad Shafee Abdullah objected to several statements by Husni, saying the witness had added a “twist” when testifying on evidentiary documents. 

“His testimony is that his actions were like a gun was held to his head,” said Shafee, who described Husni’s testimony as “almost like an angry man.”

Justice Mohd Nazlan Mohd Ghazali allowed the defence’s request to confer with Najib on the manner in which the witness’ cross-examination will be carried out.

The judge then adjourned the trial to Thursday.

Husni, appointed by Najib to the cabinet in 2009, resigned from his post on June 27, 2016. 

He was also Tambun member of Parliament for five terms until he was defeated at the May 9 polls last year by Bersatu’s Ahmad Faizal Azumu, who is currently Perak menteri besar.

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. 

The former prime minister is represented by a dozen lawyers led by Shafee, while Attorney-General Tommy Thomas leads the prosecution. – August 6, 2019.