This article first appeared in The Edge Malaysia Weekly on January 13, 2020 - January 19, 2020
FORMER finance minister II Datuk Seri Ahmad Husni Mohamad Hanadzlah was not allowed to retrieve RM3 billion of SRC International Sdn Bhd’s funds frozen by Swiss authorities in 2013 on suspicion of money laundering as he did not have “a proper plan”, Datuk Seri Najib Razak told the Kuala Lumpur High Court last week.
During cross-examination, ad hoc prosecutor Datuk V Sithambaram grilled Najib about his lack of interest in SRC despite his role as prime minister, finance minister and emeritus adviser.
Najib said he was never informed of developments at the company on a regular basis despite the problems it was facing. This led the prosecution to suggest that he did not take an active interest in SRC.
Najib: I was dependent on the board. If matters were referred to me, then I would take action. SRC is a company like any other.
Sithambaram: Hence, you did not take an active interest [in SRC].
Najib: I disagree.
Sithambaram: What interest did you show? What action did you take?
Najib: I wanted to bring the money back [from Switzerland].
Sithambaram: That’s what you say, but there is no evidence to show that. That might have been your intention, but it is not recorded anywhere.
This led to questions on why Najib did not approve Ahmad Husni’s request to head for Switzerland, as Sithambaram argued that if a government representative was sent, the chances of retrieving the money would be better. This is especially so as the money was a loan from Kumpulan Wang Persaraan (Diperbadankan) or KWAP, he added.
Najib repeated his previous explanation, saying that Ahmad Husni did not make a formal request. He added that Sithambaram’s argument that the money could have been retrieved if a government representative was sent in place of SRC’s representatives is debatable.
Sithambaram: Datuk Seri, this money is money belonging to a legitimate government pension fund. If the finance minister or the second finance minister went, it would have been more effective. I can’t imagine otherwise. So, why couldn’t Ahmad Husni retrieve it?
Najib: It would be more effective if he had a proper plan.
Sithambaram: Did you tell him to get a proper plan?
Najib: I didn’t tell him that, but I wanted a proper plan.
Sithambaram: I put it to you that you did not want him to go to Switzerland and bring the funds back.
Najib: I disagree.
Najib said if the money still could not be retrieved, the government would eventually have to step in.
The prosecution pointed out that this never happened as his term as prime minister ended before the money could be retrieved.
Ahmad Husni, the 56th prosecution witness, previously told the court that he had sought Najib’s permission to lead a delegation from the Finance Ministry, Bank Negara Malaysia and KWAP to meet the Swiss authorities to provide them with documents proving that the money was a loan from KWAP.
However, Najib rejected his request.
Ahmad Husni also testified that he was treated like an “office boy” when it came to matters related to 1Malaysia Development Bhd (1MDB) and SRC.
While there should not be any difference in the tasks of the finance minister and second finance minister, he said Najib was solely in charge of matters concerning 1MDB, its precursor Terengganu Investment Authority and SRC.
On the other hand, Najib told the court that he never prevented Ahmad Husni from being involved in 1MDB matters. He said Ahmad Husni only informally asked him if he should go to Switzerland to resolve the matter as he had some contacts in that country that may be able to assist.
The Edge is reporting the proceedings of the SRC trial live.
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