This article first appeared in The Edge Financial Daily on December 12, 2019

KUALA LUMPUR: The High Court was told yesterday that former deputy prime minister Datuk Seri Dr Ahmad Zahid Hamidi lent RM10 million of Yayasan Akalbudi funds to a local coal company after its chief executive officer (CEO) was introduced to him by the husband of a pop songstress in Malaysia in 2015.

Armada Holdings Sdn Bhd CEO Datuk Wasi Khan @ Wasiyu Zama Israr, 50, said his company needed the RM10 million paid-up capital to meet the minimum requirements for registration to get TNB Fuel Services Sdn Bhd’s spot contract.

“However, my company did not have that amount in our accounts. Since we are hoping to get a project and we have to register with TNB Fuel, I contacted my friends, including (the songstress’s husband) Datuk Seri Khalid Mohamad Jiwa (popularly known as Datuk K) to ask if they can lend me RM10 million to be used as our paid-up capital.

“I initially asked for Khalid’s help to set a meeting for me with Ahmad Zahid with the hope to reduce the required capital from RM10 million to only RM5 million. Khalid agreed and asked me to come and meet with Ahmad Zahid,” the witness said during the examination-in-chief by Deputy Public Prosecutor Nur Aishah Maulat Ahmad Zakiuddin.

Wasi said this in his witness statement at the trial of Ahmad Zahid who is facing 47 charges — 12 for criminal breach of trust, eight for corruption and 27 for money laundering — involving tens of millions of ringgit from Akalbudi Foundation.

Wasi said he knew that Khalid is a close friend of Ahmad Zahid.

The witness also said that he and Khalid then went to see Ahmad Zahid at the latter’s office at the home ministry in Putrajaya.

“The meeting lasted about 20 minutes as it was aimed at getting Ahmad Zahid to suggest for the reduction of the required paid-up capital for the project.

“But, Ahmad Zahid said he could not interfere in TNB matters and policies, but did propose a kind of quick financial solution,” Wasi said.

The witness said a month after the meeting, he was verbally invited by Ahmad Zahid to come to the Parliament House the following day.

Wasi said during their meeting at the Parliament House, the former deputy prime minister asked an Affin Bank officer to give him (Wasi) a cheque for RM10 million and a month to repay the loan.

“I looked into the details and found that the RM10 million cheque dated Nov 16, 2015 was issued to Armada Holdings. The name Yayasan Akalbudi was also on the cheque, meaning that it was issued by Yayasan Akalbudi.

“During our previous meetings, Ahmad Zahid did not mention anything to me that the loan given to the company would be from Yayasan Akalbudi,” he said.

The witness said a month later, he had made full repayment of the loan with interest of 4% or RM69,722.65 using two CIMB Bank cheques belonging to his company.

“Unfortunately, Armada Holdings did not succeed in securing any project with TNB Fuel,” he said.

Police football association gets RM1.3m from foundation

Earlier, the court heard that the Royal Malaysia Police (PDRM) Football Association received a cheque for RM1.3 million from Yayasan Akalbudi for the management of the association in November 2015.

The association’s assistant secretary ASP Mohd Nizam Mohd Noor, 39, said the cheque dated Nov 19, 2015 was received from Ahmad Zahid’s son-in-law Datuk Zul Hisham Zainal, who was the intermediary between the association and the former deputy prime minister.

He said the cheque was later handed to the association’s assistant treasurer Sergeant Khairul Azuan Ramli to be banked into the association’s account.

When referred to a CIMB Bank account statement of the association dated Nov 30, 2015 by Nur Aishah, Mohd Nizam confirmed that RM1.3 million was banked into the association’s account via a transaction dated Nov 23, 2015.

The police officer, who was appointed to the post from 2008 till today, said when reading his witness statement on the 11th day of trial of Ahmad Zahid.

When cross-examined by counsel Datuk Rosal Azimin Ahmad who is representing Ahmad Zahid, Mohd Nizam said before receiving the cheque, he had informed Zul Hisham that the association needed RM1.3 million to pay about three to four months of players’ salary arrears.

Rosal Azimin: I am proposing that the RM1.3 million is a form of assistance from Ahmad Zahid through the foundation to PDRM which is badly in need of the assistance.

Mohd Nizam: Agree.

Rosal Azimin: I am proposing that Ahmad Zahid need not help [the association] but he himself wanted to give the aid (money).

Mohd Nizam: Yes, correct.

When Rosal Azimin proposed that on July 14, 2016, the National Sports Council (MSN) had paid RM1 million back to the foundation and the remaining RM300,000 was a form of assistance from the foundation to PDRM, the witness replied that he was not sure.

Earlier when reading his witness statement, Zul Hisham said as Ahmad Zahid’s son-in-law since 2004, he did not know that his father-in-law owned Yayasan Akalbudi or any other foundations.

When cross-examined by Rosal Azimin on the RM1.3 million fund, Zul Hisham who initially was not directly involved with PDRM football association around 2014, said Mohd Nizam told him that the RM1.3 million was for payment of players’ salaries and the association’s administrative expenses.

The businessman who was appointed officially PDRM football team manager for the 2017 season said the average total monthly remuneration for 30 PDRM players and management was RM500,000 to RM600,000 a month and the amount was inadequate if it depended on allocations received from PDRM and the Football Association of Malaysia.

The trial before Justice Collin Lawrence Sequerah continues today. — Bernama