KUALA LUMPUR: Najib Razak told the High Court today that he had no knowledge of whether the Cabinet’s approval to guarantee two loans totalling RM4 billion to SRC International from the Retirement Fund Inc (KWAP) was tabled in the Dewan Rakyat although it was required by law.
The former prime minister, who was also the finance minister at the time, said it was the duty of the “functionaries” to do so.
It was unclear who Najib meant by “functionaries” but it was believed that he was referring to officials at the ministry of finance.
“We have no verification whether the government guarantees were tabled in Parliament. It is the duty of the functionaries. It is an administrative action,” Najib said when cross-examined by ad-hoc prosecutor V Sithambaram.
The prosecutor then referred to Section 2 (3) of the Loans Guarantee (Bodies Corporation) Act which stated that the minister shall, as soon possible, lay before the Dewan Rakyat a statement of the guarantee together with a copy of the agreement.
Sithambaram: I put it to you that these government guarantees were never laid before the Dewan Rakyat?
Najib: I do not know.
Sithambaram: Do you know the purpose of laying it before the Dewan Rakyat is for all (members of Parliament) to know?
Najib: Yes, for transparency.
Najib, who is the first defence witness in his trial, admitted that no Parliament Hansard could be produced to confirm if the government guarantees had been tabled in the Dewan Rakyat.
He also disagreed with Sithambaram’s suggestion that under the law, it was the duty of the minister to table any government guarantee.
In 2011 and 2012, the Cabinet chaired by Najib had issued the government guarantees to KWAP for two loans totalling RM4 billion to SRC to enable the latter to venture into the alternative energy sector.
The prosecution today completed its cross-examination on Najib as the trial entered its 74th day. Attorney-General Tommy Thomas and Sithambaram took 12 days from Dec 10 to question the accused.
Re-examined by lawyer Farhan Read, Najib said he could not override the decision by the KWAP Investment Panel to approve the loans.
He also said the government guarantees for the loans were not predetermined and Cabinet members were given the opportunity to express their views.
“There had been cases of proposals being rejected even though they were raised by the prime minister,” said Najib who led the Barisan Nasional government from April 2009 until May 2018.
Najib said SRC was formed in view of national interest to search for alternative energy.
“The over-reliance of oil and gas could also affect the nation’s interest,” he said.
Najib is accused of abusing his power as prime minister by giving government guarantees on SRC International’s RM4 billion loan from KWAP.
He is also charged with three counts of money laundering and three counts of criminal breach of trust in the transfer of RM42 million to his accounts from the former 1MDB unit.
Hearing before judge Mohd Nazlan Mohd Ghazali continues.-FMT