THERE was nothing charitable when Ahmad Zahid Hamidi withdrew RM17.9 million from charity foundation Yayasan Akalbudi to help his daughter buy a hotel in Bali, Indonesia, the Kuala Lumpur High Court heard today.

The money from the foundation was to help eradicate poverty, said deputy public prosecutor Raja Rozela Raja Toran, adding that she did not see how running a boutique hotel in Indonesia helped the poor in Malaysia.

“Even if for one lovely moment, we were to accept that the RM17.9 million was a form of investment by Yayasan Akalbudi, the question is how does running a boutique hotel in Indonesia help the poor in Malaysia, if that is the true purpose,” Raja Rozela submitted in Zahid’s corruption trial today.

Zahid’s lawyer had previously argued the withdrawal was due to the negligence of Zahid’s former secretary Mazlina Mazlan @ Ramly.

“It defies credibility for the accused to actually suggest that transferring the millions was easier than transferring his secretary.

“It is our contention that the real purpose for the RM17.9 million fixed deposit withdrawals were to facilitate his daughter’s bid to buy a hotel in Bali,” Raja Rozela said.

The court had earlier heard that Zahid gave specific instructions to Affin Bank, in a letter dated June 23, 2016, to withdraw all monies, inclusive of the interests earned, from the seven fixed deposit accounts.

The money was transferred to Yayasan Akalbudi’s alleged trustee law firm, Lewis & Co., via banker’s cheque.

According to the 87th prosecution witness, Muralidharan Balan Pillai, a partner at Lewis & Co., the amount was credited into the firm’s client account on June 28, 2016.

Two days later, the firm issued a cheque for RM8,602,920 to Ri-Yaz Asset Sdn Bhd upon receiving instruction from Zahid, Muralidharan said.

The other RM9.3 million from the RM17.9 million was placed into other fixed deposit accounts.

Muralidharan also said in his witness statement that he was instructed by Zahid to make the payment for the purpose of purchasing 60% of the company’s shares from then Ri-Yaz Asset chairman Abdul Rashid Abdul Manaf.

Rashid, 83rd prosecution witness, earlier told the court that he had sought to sell off his shares because the company was facing difficulties repaying a US$24.8 million loan from EXIM Bank for the purchase of a hotel in Bali, Indonesia.

“It is worth mentioning that the interested buyer was Nurul Hidayah Ahmad Zahid, the accused’s daughter,” Raja Rozela said.

“And this was confirmed by Rashid and Ri-Yaz Group managing director Mohammad Shaheen Shah Mohd Sidek (84th prosecution witness) who had met both Nurul Hidayah and the accused to discuss the proposed venture.”

Zahid, 68, is facing 47 charges – 27 for money laundering, 12 for criminal breach of trust and eight for corruption – involving tens of millions of ringgit belonging to Yayasan Akalbudi.

The trial resumes on Monday before high court judge Collin Lawrence Sequerah. – October 14, 2021.