Day 62 Najib Disagrees That Kwap Investment Panel Mere Window Dressing

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The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters day 62 today at the High Court in Kuala Lumpur
Malaysiakini brings you live reports of the proceedings
Summary of Najib’s SRC RM42 million caseNajib is facing 7 charges relating to RM42m involving SRC International, a former 1MDB subsidiary
1 abuse of power charge3 criminal breach of trust (CBT) charges3 money laundering chargesClick to view information on judge, prosecution and defence teamKEY HIGHLIGHTSNajib disagrees that KWAP investment panel mere window dressingNajib tells attorney-general to refer to the law that binds KWAPNik Faisal never referred KWAP's request for information to me - NajibHeated argument between Najib and AG ThomasNajib disagrees with the order for KWAP to approve RM3.95 billion loan to SRCSRC's M&A that gives micromanaging role to PM, not my idea, says NajibNajib: I have never purchased big things on my credit cardNajib cannot discuss with lawyers until prosecution finishes cross-examinationNajib says he sacked Muhyiddin because the latter went public on 1MDBNajib disagrees that he became Finance Minister to source funding to 1MDBPrime minister's power is not absoluteCabinet issue code of ethics in 1997 to address conflict of interest issuesNajib bristles during AG cross-examination on 1986 Umno splitI bought a watch to placate my family for short Hawaii trip: Najib1MDB saved the country RM15b annuallyNajib says he encouraged MACC to interview Jho LowNajib: 'I don't have veto power in 1MDB'My authority in other bodies more comprehensive compared to 1MDB: NajibNajib mulling to lodge police report on alleged forgery of his signaturesNajib seeks Australian expert to verify authenticity of documentsThank you for following Malaysiakini's live report5.17pm - Thank you for following our live report today
Proceedings to continue at 9am tomorrow4.26pm - Proceedings adjourn for the day, with Najib Abdul Razak's cross-examination to resume at 9am tomorrow morning
Najib disagrees that KWAP investment panel mere window dressing4.11pm - Najib Abdul Razak disagrees with Attorney-General Tommy Thomas' assertion that the Retirement Fund Inc (KWAP) investment panel were mere window dressing to execute his desires
The former prime minister makes this denial during cross-examination by Thomas in regards to Najib allegedly influencing the KWAP investment panel to approve the loan application by SRC International
SRC International was granted a total RM4 billion loans from KWAP in two separate tranches, first RM2 billion in late 2011 and the other RM2 billion in early 2012
Thomas: I put it to you that this is a fait accompli, window dressing by (KWAP investment) committee going through the motion. They are just carrying out your wishes
Najib: Disagree as, under the law, the investment panel have absolute discretion to make a decision
Najib tells attorney-general to refer to the law that binds KWAP4pm - Former prime minister Najib Abdul Razak takes a swipe at Attorney-General Tommy Thomas during a brief argument over Retirement Fund Incorporated's (KWAP) approval of SRC International's loan application in 2011
This happens when Thomas is suggesting that it was Najib as the then Finance Minister who made the approval for KWAP
Hearing this, Najib then says that he could not have done so, stressing that the power to approve a loan application is only at the hands of KWAP's investment panel
"I want to stress that any approval must be by the investment panel. I cannot approve," says Najib
Unsatisfied with the answer, Thomas again presses Najib, putting it that it was the politician who approved the loan
This is when Najib starts speaking in a stronger tone
"No, I cannot approve. That is the law. You must give me the law," he says
"You are the AG. You tell me," Najib adds. Nik Faisal never referred KWAP's request for information to me - Najib3.48pm - Former prime minister Najib Abdul Razak denies that he was the one who turned down SRC International's request to share its investment plan with the Retirement Fund Incorporated (KWAP) in 2011
Najib claims that then CEO of SRC, Nik Faisal Ariff Kamil, had never referred to him any request to furnish the information, which KWAP needed to consider SRC's RM2 billion loan application
If Nik Faisal had referred such matter, Najib adds, he would have told the CEO to share everything with KWAP
"If he had referred to me, I would have asked him to give all information needed by KWAP," he testifies
Najib was answering attorney-general Tommy Thomas' question regarding a series of emails between SRC and KWAP, where Nik Faisal had told the latter that he could not furnish the information to KWAP without approval from Najib
For the record, Najib was then the chairperson of SRC's board of advisers by virtue of being the prime minister
"If he had used my name, what am I going to do? I have never agreed to this!""Never," Najib adds, when Thomas keeps pressuring him, putting it to him that it was him who rejected Nik Faisal's request to furnish the information
Heated argument between Najib and AG Thomas3.45pm - The court witnesses a brief heated argument between former prime minister Najib Abdul Razak and attorney-general Tommy Thomas
This comes as Najib disagrees with the prosecutor's suggestion that his handwritten note on SRC International's loan application letter was an approval order to the Retirement Fund Incorporated (KWAP)
Najib says that KWAP officers thought wrong when they took it as an order
"It is not a direction. He assumed it was, but it was a wrong assumption," he tells the court upon being pressed by Thomas about an earlier testimony by KWAP officer Amirul Imran Ahmat
For the record, Amirul had testified in the trial claiming that KWAP took Najib's minute on SRC's letter, saying that he agreed to the application, as an order
Najib disagrees with the order for KWAP to approve RM3.95 billion loan to SRC3.42pm - Najib Abdul Razak disagrees that his notation "Bersetuju dengan cadangan" (agree with suggestion) on SRC International's RM3.95 billion loan application from Retirement Fund Inc (KWAP) amounted to an order for such a loan be issued
During cross-examination by Attorney-General Tommy Thomas, the former prime minister disputes the testimony of KWAP's former assistant vice-president Amirul Imran Ahmat
During the prosecution stage of the trial, Amirul testified that KWAP initially greenlighted SRC's application for the RM3.95 billion loan, as they saw Najib's notation on the application letter in 2011
Thomas: Amirul saw it as a direction
Najib: He (KWAP) merely process (the loan application from SRC). It is not a direction. His assumption is wrong
Najib adds that he has no authority to compel KWAP and that its investment panel must do the risk analysis of the loan bid first
It was reported that KWAP later greenlighted a RM2 billion loan to SRC for 2011, and another RM2 billion in 2012
SRC's M&A that gives micromanaging role to PM, not my idea, says Najib3.30pm - The court hears from Najib Abdul Razak that he did not make the suggestion for SRC International's memorandum and articles of association (M&A) to give a prime minister the power to approve the appointment and removal of its senior management executives
According to the former prime minister, he would prefer to focus on policy issues rather than delving into micro issues
Najib says this when answering questions from Attorney General Tommy Thomas about the M&A
"I would prefer to focus on the core issues. This is not my suggestion," he testifies
For the record, SRC International's M&A enacted when the company was formed in 2011 stated that any appointment or removal of its board members, chief executive officer and members of senior management cannot take effect without prior written approval from the serving prime minister

Najib: I have never purchased big things on my credit card2.45pm - Attorney-general Tommy Thomas resumes his cross-examination after the lunch break with questions related to Najib Abdul Razak's dealings with banks
To a question about credit cards, Najib tells the court that he cannot remember when was the first time he acquired one, but agrees with Thomas that throughout his career he has had credit cards from major suppliers like Visa and Mastercard
Thomas then asks Najib what was the credit limits for his credit cards in 2013 and 2014, which was when he was still the prime minister and material time of the SRC International charges
To this, Najib claims that he cannot remember
"For my personal credit cards, I cannot really remember. Because I have never bought big things," says Najib
Asked if he is aware that banks impose high charges on credit cards after their grace period, Najib says he knows about it albeit not in specifics
Najib cannot discuss with lawyers until prosecution finishes cross-examination2.40pm - The proceeding resumes with lead prosecutor, attorney-general Tommy Thomas requesting the court to remind former premier Najib Abdul Razak not to communicate with his own lawyers until the prosecution completes their cross-examination on him
Najib is testifying as the first defence witness in the trial against him. Today is the fourth day he appears in the witness box, and the first day of cross-examination by the prosecution
The court then grants the request
Proceedings resume after lunch break2.39pm - Proceedings resume after lunch break
12.51pm - Proceedings break for lunch, and cross-examination of Najib Abdul Razak will resume at 2.30pm this afternoon
Najib denies he sacked Muhyiddin for disagreeing with him12.43pm - The court hears from former prime minister Najib Abdul Razak that he sacked his deputy Muhyiddin Yassin in 2015 not because the latter disagreed with him on 1MDB
According to Najib, the sacking was because Muhyiddin was speaking in public about his disagreement with him (Najib) instead of within the cabinet sphere
"I have never fired anyone because he disagreed with me," Najib says, answering a question from Attorney-General Tommy Thomas
Thomas then asks Najib how can he explain the sacking of Muhyiddin who had disagreed with him on the sovereign wealth fund 1MDB issue
"No. It was because he made statements outside. That is my take," replied Najib
Najib disagrees that he became Finance Minister to source funding to 1MDB12.35pm - Former prime minister Najib Abdul Razak disagrees that he became finance minister to source funds to 1MDB by issuing government guarantee
The accused replies this during cross-examination by Attorney-General Tommy Thomas
Thomas was also earlier asking Najib about the alleged notion that no creditor would lend money to 1MDB unless there is a guarantor, such as a government guarantee
Thomas: I suggest that you became finance minister so you could use the Treasury and Ministry of Finance to source funds to lend to 1MDB by issuing government guarantee
Najib: I totally disagree
Thomas: As prime minister, you could not do it, but as finance minister, you could do it
Najib: Disagree
Prime minister's power is not absolute12.15pm - Former prime minister Najib Abdul Razak says that the power that a Malaysian prime minister is not absolute
While agreeing to a suggestion by Attorney-General Tommy Thomas that a prime minister holds enormous power in the country including in appointing individuals to key positions in companies related to the government, Najib says the power still has its limits
Thomas questions Najib on conflict of interest12pm - The court hears from Najib Abdul Razak that the cabinet in 1997, then under the leadership of Dr Mahathir Mohamad as the fourth prime minister, had issued a code of ethics that addresses issues of conflict of interests
Answering question from the attorney-general Tommy Thomas during prosecution's cross-examination, Najib says the cabinet issued the code than to prevent ministers from abusing their position to influence cabinet decisions in matters where a minister has personal interests in
Thomas then continues his examination by asking Najib his understanding of conflict of interests
Thomas: As far as Datuk Seri's understanding, what was required if a minister is personally interested in a matter discussed in cabinet
Najib: First of all, he or she must have a personal interest, meaning that he or his family members can have personal benefits from the decision made by the cabinet
Thomas: What is the cabinet minister required to do to comply with the code
Najib: Normally the minister would excuse himself or herself from the discussion when the matter was tabled. Means he needs to inform the chairperson and leaves the room. Only after the discussion is over that he would return

Tommy ThomasNajib bristles during AG cross-examination on 1986 Umno split11.20am - Former prime minister Najib Abdul Razak bristles during cross-examination by Attorney-General Tommy Thomas over which team he supported during the 1986 Umno power struggle
The accused responds that the question isn't relevant to the case before him
Thomas: During the infamous 1986 to 87 Team A and Team B Umno (power tussle), did you support Dr Mahathir (Mohamad) against Tengku Razaleigh
Najib: I am not sure whether that is relevant, this is a political realm. Is it relevant? Do I need to answer
Thomas: You need to answer as long as there is no objection (from the defence lawyers)
Najib: I supported Dr Mahathir
I bought a watch to placate my family over short Hawaii trip: Najib10.45am - Najib Abdul Razak testifies that he spent US$130,625 (RM466,330.11) on a luxury watch for his wife Rosmah Mansor, to placate his family for cutting short the trip in Hawaii in 2014
The former prime minister says his family was disappointed when he was forced to end the personal family with them, due to the floods in the East Coast in Dec 2014
"It was near my wife's birthday, hence why they were very disappointed with my decision (to cut short the trip)
"My son Ashman, who worked in Istanbul, came all the way to Honolulu, only not to find me there
"Therefore, I made the decision to placate my family and to buy something chosen by my wife," Najib says in relation to the credit card purchase of the watch at Chanel, Honolulu, Hawaii, on Dec 22, 2014
1MDB saved the country RM15b annually10.40am - Former premier Najib Abdul Razak takes a swipe at Prime Minister Dr Mahathir Mohamad, claiming that "sweetheart deals" involving independent power producers (IPPs) that allegedly occurred when the latter was the fourth prime minister had cost the country billions of ringgit
This happened because the IPPs were allegedly given subsidised rates for gas produced by Petronas
Najib then goes on to claim that this was changed when 1MDB came into the picture, where contracts are no longer given on direct negotiation
"Although many are criticising 1MDB but the steps taken by 1MDB had saved the country between RM10 billion and RM15 billion a year because the terms had been (changed) to bidding process
"This was started after two IPPs were taken over by 1MDB."His lawyer Muhammad Shafee Abdullah then asks Najib on the "sweetheart deals" happened during which administration, to which he answers: "During the time of the fourth prime minister, who is today the seventh prime minister."Najib says he encouraged MACC to interview Jho Low10.35am - The court hears from former prime minister Najib Abdul Razak that MACC had warned him about Jho Low and the latter's associate sometime around 2015 and 2016
According to him, this was why had encouraged the authority to record a statement from the 1MDB linked businessperson then
Najib says this when answering a question from his defence attorney Muhammad Shafee Abdullah
Shafee: Lastly, when you were the prime minister, did any enforcement body like the MACC or police told you or warned you about misdeeds in 1MDB or about Jho Low and his associates
Najib: There was. That was why they have taken action to interview Jho Low. I was informed that MACC did interview Jho Low
Shafee: What year was that
Najib: I can't remember clearly. Maybe around 2015 to 2016
Shafee: And you knew this was happening
Najib: (Yes) and I encouraged them
Najib: 'I don't have veto power in 1MDB'10.25am - Najib Abdul Razak claims that he did not have veto power on 1MDB when he was the chairperson of its board of advisers (BOA)
According to the former premier, he also could not make a decision for BOA on his own as the board must comprise at least four members in its meetings
"With the composition as stated (in a clause on 1MDB BOA), it is clear that I could not act on my own on the position or name of BOA chairperson, but the board itself must convene."According to Najib, any decision made by the board was always based on consensus, and should they have to vote, each member of BOA has one vote including the chairperson
My authority in other bodies more comprehensive compared to 1MDB: Najib10.10am - Najib Abdul Razak testifies that he does not see anything unusual in his then position as chairperson of board of advisors to 1MDB
The former prime minister says this is because his authority in other bodies like Khazanah and Petronas are more comprehensive compared to that of his as chairperson of 1MDB's board of advisors (BOA)
Najib is replying to a question from his lead defence counsel Muhammad Shafee Abdullah on whether the accused had a choice on whether to be appointed as chairperson for 1MDB's BOA
"I had other choices, but I do not regard that as something unusual or out of the ordinary as my authority in other bodies are more firm and more comprehensive compared to 1MDB
"Especially in Khazanah, I was chairperson as prime minister and was involved in all decision by Khazanah," Najib says
He adds that these authority in Khazanah and Petronas were conferred by statute, further adding that as 1MDB BOA chairperson, his advice could only be sought if the board of directors sought such advice
Najib mulling to lodge police report on alleged forgery of his signatures9.50am - Former prime minister Najib Abdul Razak says that he believes seven documents bearing what looked like his signature that was tendered in court were forged documents and is mulling to lodge a police report on the matter
According to Najib, he has been advised by his lawyer to wait for the documents to be physically examined by a document specialist first before deciding whether to do so or not
He says this when answering a question from his lawyer Muhammad Shafee Abdullah if he had put his signatures on the documents, marked as P277, P497(3-4), P530(2-9), P501, D534, D535, and P510
"No. As I have said, I believe that these documents are not authentic based on matters that were raised throughout the trial
"Honestly, during the time I was serving the government, I have signed thousands of documents and I would not lodge a police report until I am sure that my signature is not original (forged)
"Although there were initial findings by document specialist (on possible forgery), my lawyer had advised me to wait for physical examination on the documents are done by a document expert, before deciding whether a police report should be lodged," says Najib
For the record, the documents that Najib is disputing their authenticity include a Minister of Finance Incorporated (MOF Inc) minutes on 1MDB, three sets of SRC International's extraordinary general meeting minutes and special shareholders resolution
The MOF Inc minutes dated Feb 17, 2012 ordered how SRC funds should be utilised and approving amendments to be made on SRC's memorandum and articles of association
Najib seeks Australian expert to verify authenticity of documents9.41am - Najib Abdul Razak reiterates for an Australian handwriting expert to examine and verify the authenticity of documents that purportedly contain his signature
The former prime minister testifies this during examination-in-chief by his lead defence counsel Muhammad Shafee Abdullah
The accused says among others that he cannot verify the authenticity of a Minister of Finance Inc (MoF Inc) minute purportedly approving the amendment to the Memorandum of Association (M&A) of SRC International
"A handwriting expert from Australia is appointed to examine the authenticity of my signatures on document," Najib says
Yesterday, the defence had applied to seek for an Australian handwriting expert to be flown in and examine the documents tendered by the prosecution during trial
This was opposed by the prosecution leading to High Court judge Mohd Nazlan Mohd Ghazali telling defence to submit a formal application to allow parties to submit on the matter
Najib enters the witness stand as proceedings begin9.23am - Lead defence counsel Muhammad Shafee Abdullah begins examination-in-chief of former prime minister Najib Abdul Razak
9.16am - Najib Abdul Razak enters the witness stand as proceedings begin
All eyes today will be on the questions by the defence team to their client, Najib Abdul Razak, after he had completed reading out his 243-page prepared witness statement yesterday in the defence stage of his RM42 million SRC International trial
As the 62nd day of hearing resumes before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali this morning, the Muhammad Shafee Abdullah-led defence team is expected to conduct its examination-in-chief of the former prime minister
The lawyers will ask Najib for further clarifications on points raised in the witness statement to strengthen the former finance minister’s defence and try to raise doubt in the prosecution’s case involving seven charges against him for abuse of power, criminal breach of trust and money laundering
SRC International was a former subsidiary of troubled sovereign wealth fund 1MDB, before the company's ownership was transferred to the Minister of Finance Incorporated in 2012
Najib spent three days of proceedings reading out from his witness statement, whereby yesterday alone saw the former SRC International advisor emeritus testified that his credit card spending at luxury stores in Hawaii and Italy were for his wife Rosmah Mansor and diplomacy, respectively
Yesterday also saw Najib telling the court he did not know millions of ringgit of funds from SRC International entered his bank accounts and that it would be insane for him to endorse the transactions
There were at least 46 instances in his witness statement where the former finance minister said he didn't know or had no knowledge in matters pertaining to the SRC International case. - Mkini

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