This article first appeared in The Edge Financial Daily on April 25, 2019 - May 1, 2019

KUALA LUMPUR: A cheque for RM2.5 million issued by Datuk Seri Najib Razak on Feb 2, 2015, allegedly using funds from SRC International Sdn Bhd, was paid to his former aide, Datuk Habibul Rahman Kadir Shah, through a law firm, the High Court was told yesterday.

Prosecution witness, Ashraf Abdul Razak, a former partner of law firm Zulqarnain & Co which was the recipient of the cheque, said he obtained the personal cheque — one of 15 issued by Najib underlined by the prosecution in the Najib-SRC trial — from Habibul directly.

“Habibul informed me that he will receive [the] payment for negotiation service for a defence supply contract,” said Ashraf, adding that he never doubted the words of his client of nearly 23 years “because of his position” as a corporate figure.

Ashraf, who was instructed by Habibul to manage the fund, said it was channelled to multiple parties including the bank accounts of Habibul and his family members.

Application to trace missing RM8m Ihsan Perdana funds allowed

From the fund, Ashraf also received RM50,000 as lawyer fee — Habibul was Ashraf’s client especially on matters relating to Fuel Subs House Sdn Bhd, a company under Habibul that was tendering a fuel subsidy management scheme at the time.

Ashraf, 48, was among four fresh witnesses called to the stand yesterday, which saw the trial conclude its eighth day.

The prosecution also called CIMB Bank deputy cheque clearance department’s senior manager, Edward Innasi, to identify the cheque for RM2.5 million, which was funded to Zulqarnain & Co’s CIMB account.

Later, Affin Bank’s transaction processing executive, Rosaiah Mohamed Rosli, 53, clarified that the three transactions into the account of Ihsan Perdana Sdn Bhd from Gandingan Mentari Sdn Bhd totalled RM50 million, of which RM42 million was then channelled into Najib’s bank accounts in AmBank. Both Ihsan Perdana and Gandingan Mentari were former SRC International’s subsidiaries.

The RM50 million came from SRC International, defence lawyer Harvinderjit Singh later confirmed.

On the RM8 million difference, High Court judge Mohd Nazlan Mohd Ghazali allowed an application by Harvinderjit for Rosaiah to help produce an image of the cheque issued by Ihsan Perdana in December 2014 of the same value, in order to trail its recipient.

“It forms part of our defence that there are people in SRC who are doing questionable business ... it shows that it is part of the same transactions,” said Harvinderjit on the rationale for the application.

Nik Faisal authorised signatory for SRC, Gandingan Mentari, Najib accounts

The last witness of the day was AmBank Jalan Raja Chulan branch manager R Uma Devi. The 40-year-old elaborated on the numerous details of the AmBank accounts for SRC, Gandingan Mentari and Najib.

Among others, Uma Devi said SRC International received RM4 billion through multiple transactions in 2011 and 2012 — likely related to the RM4 billion loan obtained from Kumpulan Wang Persaraan (Diperbadankan) which Najib was accused of facilitating using his power as prime minister at the time.

The court was told that SRC International chief executive officer Nik Faisal Ariff Kamil and ex-SRC International director Datuk Suboh Md Yassin were the signatories of the dubious transactions of RM50 million from SRC International to Gandingan Mentari and later to Ihsan Perdana in 2014 and 2015.

For SRC International, the signatories were divided into two groups, with Suboh in one and Nik Faisal in another. Gandingan Mentari only had the duo as the signatories, explained Uma Devi.

Nik Faisal was also appointed by the former prime minister as the “authorised personnel” to manage his three bank accounts in AmBank, she added.

“I refer to a letter by Datuk Seri Najib Razak which appointed Nik Faisal as the authorised personnel for all three new accounts in AmBank,” she told the High Court during the witness examination-in-chief by deputy public prosecutor Datuk Suhaimi Ibrahim.

Including the above, Uma Devi highlighted multiple transactions into Najib’s three AmBank accounts, where most transactions were made under instruction received through Nik Faisal’s letters.

These included payment of RM3.82 million for two credit cards in August 2014, as well as a RM27 million payment to Permai Bina Raya Sdn Bhd in July 2014 — the latter of which may be linked to another money laundering charge faced by Najib in a separate case in February.

Nik Faisal is currently missing, with a news report in June last year saying he had been travelling to and from Indonesia since the 1Malaysia Development Bhd (1MDB) scandal broke out in 2015. Arrest warrants have been issued for the 48-year-old, alongside missing businessman Low Taek Jho, the central figure in the billion-dollar scandal involving the 1MDB group of companies.

For Suboh, it was reported in June last year that the former SRC International director had surrendered to the Malaysian Anti-Corruption Commission. According to news reports in February, Suboh had been placed under witness protection programme pending this currently ongoing trial.

Najib faces seven charges in relation to RM42 million allegedly siphoned from SRC International.

The trial resumes at 9am today.