THE Kuala Lumpur High Court was told today that the RM10 million fund given by Dr Ahmad Zahid Hamidi through Yayasan Akalbudi (YAB) to Armada Holdings Sdn Bhd to bid for a tender to apply coal to Tenaga Nasional Bhd (TNB) was for investment purposes.

Businessman Khalid Mohamad Jiwa, better known as Datuk K, 64, said the RM10 million had been returned to the foundation, with interest amounting to RM69,722.65.

He disagreed with a suggestion by deputy public prosecutor Mohd Dusuki Mokhtar that the funds were given as loans.

When questioned if it ever crossed his mind how Zahid could have RM10 million, Khalid, who has known the deputy prime minister for almost 30 years since he working as a manager of the loan department at Bumiputra Bank (now CIMB Bank), said Zahid was a corporate figure, an entrepreneur, a former banker and also had various financial resources.

“I grew close to Zahid after a long period of acquaintance. I know his nature and character. Among the qualities I know of is that he is generous, likes to help people who need help,” he added.

Khalid, who is the eighth defence witness, was testifying during Zahid’s hearing on 12 charges of breach of trust, eight charges of corruption and 27 charges of money-laundering involving tens of millions of ringgit in YAB funds.

When reading out his witness statement, Khalid said he was close to Zahid and that he and his wife, Siti Nurhaliza Tarudin, had also been to the holy land several times with the deputy prime minister and his wife, to perform the umrah.

Regarding the RM10 million from YAB to Armada Holdings, Khalid said it began in 2015 when he met a friend, Wasi Khan@Wasiyu Zama Israr, who is the 21st prosecution witness.

“Wasi saud he intended to set up a coal-supplying company in Indonesia and needed a paid-up capital of RM10 million to meet the minimum requirements to be registered as a supplier or contractor under TNB.

“Wasi knows I am a close acquaintance of Zahid and asked for my help to arrange a meeting.

“I agreed and arranged a meeting for the three of us at Zahid’s office at the Home Ministry in Putrajaya,” he said.

Khalid said during the meeting, Wasi informed Zahid of his intention and also requested the latter’s intervention to ask TNB to reduce the amount of paid-up capital to RM5 million.

“However, Zahid said he could not as the matter was not in his jurisdiction and that it would be an offence for him to interfere in the affairs and policies that have been set by TNB,” he added.

Khalid said the meeting ended with Zahid agreeing to provide the RM10 million and after receiving the funds, Wasi set up Armada Holdings Sdn Bhd.

He told the court that to his understanding, the RM10 million given by Zahid to Wasi was an investment.

“I also know that Zahid is a former banker and he has knowledge about this matter. The RM10 million is intended solely to enable Armada Holdings to be eligible to bid for the tender as a coal supplier to TNB,” he said.

The hearing before judge Collin Lawrence Sequerah continues. – Bernama, August 21, 2023.