IN the 13th week of Najib Razak’s SRC International Sdn Bhd trial, former second finance minister Ahmad Husni Hanadzlah described the government-linked entity as having “autocratic elements” under a prime minister who repeatedly ignored fiscal and moral hazard warnings.

Husni, who served the cabinet from 2009 to 2016, told the Kuala Lumpur High Court that he was impeded in his official dealings with 1Malaysia Development Bhd (1MDB) and its former subsidiary, SRC International.

The 67-year-old testified that unlike other government-linked entities, Najib appeared to have taken a direct role in 1MDB, its precursor, Terengganu Investment Authority, and SRC International.  

Husni said he twice opposed the direct role Najib had in 1MDB and SRC International. Later, his officers’ requests for documents on SRC International and its investments were also denied.

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

Treated like an ‘office boy’

He said he told Najib in 2009 that he objected to the 1MDB-PetroSaudi International Ltd joint venture because 1MDB didn’t have the expertise in oil and gas.

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

The witness also said 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 said.

He also complained about the difficulty obtaining information from SRC International’s officers, particularly its CEO, Nik Faisal Ariff Kamil.

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

In 2013, Najib refused to approve a government delegation to Switzerland after Swiss authorities had frozen SRC International’s RM3 billion in a bank there because of alleged mone- laundering.

Najib rejected Husni’s request to lead the delegation comprising officers from the Finance Ministry, Bank Negara and Retirement Fund Inc 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 (RM3.3 billion) of funds for investment in natural resources were misappropriated.  

Husni said he resigned on June 27, 2016, because 1MDB CEO Arul Kanda Kandasamy failed to follow through on Husni’s rationalisation plan for the state investment fund.

The plan recommended the sale of equity or assets in Edra Energy, Bandar Malaysia and Tun Razak Exchange, as well as non-core assets.

Husni said another contributing factor to his resignation was Najib’s decision to move him to another ministry.

“I prayed in front of the Kaaba, in tears… After I returned from Mecca, I received a calling to quit as minister,” Husni told the court.

Original minutes missing  

Another witness, Malaysian Anti-Corruption Commission investigating officer Rosli Hussain, told the court that the anti-graft agency was only able to obtain copies of minutes of SRC International’s 2013 board meetings, which were missing from secretarial books seized from SRC International on July 6, 2015.  

Rosli said he was not able to obtain the original minutes of the meetings when investigations began in mid-2015 as one of its key figures, former director Terence Geh, had fled the country.

Geh, 48, was also 1MDB’s finance director and an associate of fugitive financier Low Taek Jho.

Meanwhile, former AmBank relationship manager Joanna Yu told the court earlier in the week that a total of RM606.51 million was credited into Najib’s three current accounts from July 2013 to March 2015.

Yu said RM212.37 million comprised foreign monies received, which include RM162.44 million said to originate from a donation by a Saudi royal family.

Minus the foreign monies, which Najib claimed to be donations and gifts, the former prime minister’s accounts still showed RM394.14 million in transactions, she said.

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 former prime minister is charged with three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power. He faces up to 20 years’ imprisonment if convicted.

Najib’s legal team is led by prominent Umno lawyer Muhammad Shafee Abdullah. Attorney-General Tommy Thomas leads the prosecution while Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali presides.

The trial continues on Tuesday. – August 11, 2019.