‘LOAN PROCESSED IN RUSH MANNER’
KWAP asked to disburse money in one lump sum to SRC before guarantee letter was issued, says witness
THE High Court here yesterday heard how the pensioners board fund (KWAP) had released RM4 billion to SRC International Sdn Bhd even though there was insufficient documentation and information on the 1Malaysia Development Bhd-linked company for the loan to be processed.
Former KWAP assistant vicepresident Amirul Imran Ahmad said SRC only gave 25 per cent of the required documents and information, but the loan was still approved.
He said everything was done in a rushed manner and he faced a lot of pressure to expedite the whole process back in 2011 and 2012.
He also revealed how KWAP was asked to release the money in one lump sum even before the guarantee letter promised by the government was issued.
“This has never been done before,” he said in response to a question from deputy public prosecutor Datuk Ishak Mohd Yusoff.
Amirul said the RM4 billion loan was the biggest he had seen issued in his career.
He said the government guarantee letter for SRC International to get the loan was signed by Datuk Seri Najib Razak, who was then prime minister and also finance minister.
Amirul, who was the 29th prosecution witness, earlier detailed how SRC International had initially applied for a RM3.95 billion loan in 2011.
However, he said only RM2 billion was approved and SRC International then requested for another RM2 billion.
He said this, too, was approved and KWAP received a letter from the Finance Ministry dated March 28, 2012 urging the fund to disburse the second loan.
“The letter urged KWAP to consider disbursing the loan even before the government guarantee letter was issued.
“The ministry gave an undertaking that the letter would follow
within 10 days.”
The money was subsequently released to SRC International at an annual interest rate of 4.65 per cent for the first three years.
The loan was supposed to be repaid within 10 years.
“Interest payment by SRC International every six months was about RM50.8 million.
“The principal payment would only begin from the sixth year.”
Amirul said KWAP could not perform any financial analysis on SRC International when it applied for the loan as it had yet to start any business.
This was, however, circumnavigated based on the analysis of its parent company — 1MDB.
The 39-year-old said SRC International managing director Nik Faisal Ariff Kamil had sent an e-mail informing him that the ministry had taken over the company on Feb 14, 2012.
Amirul will be cross-examined by Najib’s lawyer, Harvinderjit Singh, today.
Meanwhile, another prosecution witness, Norhayati Mohd Yunus, touched on various transactions involving an SRC International-linked company called Ihsan Perdana Sdn Bhd.
She confirmed that transactions of RM50 million had taken place in the company’s Affin Bank account in 2014.
She said the money was transferred into the account by Gandingan Mentari Sdn Bhd.
Norhayati, who is Affin Bank manager at its branch at The Curve here, confirmed that she had been previously questioned by the Malaysian Anti-Corruption Commission over Ihsan Perdana’s account.
Najib is facing three counts of criminal breach of trust and one count of abuse of power over funds amounting to RM42 million linked to SRC International.
He is also facing three moneylaundering charges over the same fund.
He faces up to 20 years in jail and a fine for the offences.