KUALA LUMPUR (March 8): A total of RM17.9 million from the coffers of Yayasan Akalbudi was taken out by Datuk Seri Dr Ahmad Zahid Hamidi without the approval of the charity's board of trustees, a Malaysian Anti-Corruption Commission investigating officer told the High Court today.
The officer, Muhammad Fazli Zulkifli, 36, who was in charge of investigating the criminal breach of trust (CBT) charges against Ahmad Zahid, said the former deputy prime minister had used part of the funds to purchase a stake in hotel management firm Ri-Yaz Asset Sdn Bhd.
Fazli, who was on the witness stand last week, testified under oath that out of the RM17.9 million, Ahmad Zahid used RM8.6 million to pay the hotel management firm as a deposit for a share purchase, while the other RM9.3 million was put into fixed deposit accounts.
These transactions took place between 2016 and 2017, when Ahmad Zahid instructed the money from Yayasan Akalbudi's account to be transferred to the Maybank account of Messrs Lewis & Co, before it was channelled to Ri-Yaz Asset.
"Based on our investigations carried out including other witness statements, the investment (RM8.6 million) was made without the knowledge of the board of trustees," the officer said today.
He added the investment was made because the accused's daughter, Datuk Nurulhidayah Ahmad Zahid, had an interest in the company.
"Datuk Nurulhidayah had an interest in the investment and the payment was made by Yayasan Akalbudi," the officer said after examination-in-chief by deputy public prosecutor Ahmad Sazilee Abdul Khairi.
Businessman Tan Sri Abdul Rashid Manaf, 74, who testified as the 83rd prosecution witness in the trial last year, said Nurulhidayah had sought a 60% stake in the hotel management firm and obtained a decision-making role as the company's director.
The company was facing difficulties in repaying a US$24.8 million Exim Bank loan for the purchase of a hotel in Bali, Indonesia, as the hotel's revenue was insufficient to cover loan repayments.
Nurulhidayah was appointed a director of Ri-Yaz on Jan 27, 2017 but stepped down from the position on July 31, 2017 after the deal to buy over Abdul Rashid's 60% stake fell through.
Abdul Rashid explained Exim Bank had decided that the share sale could only proceed if he retained a minimum 10% stake and he remained as the loan's guarantor.
He disagreed with the terms, which then led to the cancellation of his share sale agreement with Nurulhidayah.
The witness today said there were no documents to show any investment between Yayasan Akalbudi and Ri-Yaz, adding that only Abdul Rashid and Nurulhidayah were privy to the details of the proposed transaction.
He also said there were no documents to show she was an observer in Ri-Yaz.
Ahmad Zahid, who is also Bagan Datuk member of Parliament, is facing 47 charges — 12 for CBT, eight for bribery and 27 for money laundering — involving millions of ringgit belonging to Yayasan Akalbudi.