This article first appeared in The Edge Financial Daily on October 25, 2019 - October 31, 2019

KUALA LUMPUR: The words “sampaikan salam” (send my greeting), appear to be the secret code used by Tan Sri Mohd Isa Abdul Samad’s former aide, Zahid Md Arip, when he wanted to demand a bribe for his then boss, according to the testimony of one former director of a company during Isa’s graft trial yesterday.

Gegasan Abadi Properties Sdn Bhd former director Ikhwan Zaidel said there were seven incidents when Zahid told him that Mohd Isa “sampaikan salam”, and that each incident preceded the transfer of funds to Mohd Isa through Zahid as payment in exchange for securing Felda Investment Corp Sdn Bhd’s agreement to buy the Merdeka Palace Hotel and Suites, in Kuching, for RM160 million.

The seven incidents took place between September 2014 and December 2015, the witness said.

“On Sept 25, 2014 I was told by Gegasan Abadi financial division that FIC (Felda Investment Corp) made a payment of RM43.126 million to Jang Assets Networking Group Ltd for the purchase of the hotel. This payment is meant for Gegasan Abadi’s payment of debt to Jang Assets,” Ikhwan said.

“Zahid contacted me and sent Tan Sri Isa’s salam (greetings). I understand the meaning of the word and agreed to the request. The last time I gave money to Isa through Zahid was in July 2014. I told Zahid that when Gegasan Abadi receives payment from FIC, the payment [for the bribe] will be made,” he said in replying to questions from Deputy Public Prosecutor Afzainizam Abdul Aziz.

FIC is a wholly-owned subsidiary of the Federal Land Development Authority (Felda), where Mohd Isa was its chairman. Gegasan Abadi was the owner of the hotel, while Jang Assets Networking Group Ltd is its controlling shareholder.

On Monday, Ikhwan, who is the prosecution’s 16th witness, told the court that Zahid had informed him that Mohd Isa wanted money to fund his political activities, and demanded RM3 million from Gegasan Abadi.

Ikhwan also said an initial amount of RM100,000 was given to Zahid sometime between July 21 and 28, 2014, after FIC agreed to purchase the hotel from Gegasan Abadi on April 29, 2014, following the payment of an initial deposit for the transaction.

Subsequent payments, Ikhwan said, were RM300,000, RM140,000, RM250,000, RM500,000, RM500,000, RM300,000,RM500,000, and RM500,000, which were made between October 2014 and December 2015.

Before each payment was made, Zahid would tell him that “Tan Sri Isa sends his salam (greetings)”.

Zahid, a political aide to Prime Minister Tun Dr Mahathir Mohamad, is scheduled to testify in the trial later.

Ikhwan was testifying in Mohd Isa’s criminal breach of trust and graft trial where the former Felda chairman is accused of approving the hotel’s purchase for RM160 million without Felda board’s approval.

He is also accused of dishonestly receiving a total of RM3.09 million as gratification from Ikhwan through Zahid, between July 21, 2014 and Dec 11, 2015, at Menara Felda to get the project approved.

‘Hotel valued lower but RM160 million was paid’

According to the testimonies of previous witnesses, including former FIC chief executive officer Mohd Zaid Abdul Jalil, the hotel was initially valued at RM137.5 million, with a second valuation placing it at RM153 million.

Zaid testified that he opposed the hotel buy in FIC board meetings based on the valuation, and that FIC had twice rejected it after Gegasan Abadi offered the hotel at the price of RM200 million.

The price tag was then lowered to RM165 million before an agreement was reached for RM160 million to be paid, despite an independent valuation commissioned by FIC showing the property was only worth RM153 million.

The purchase, Zaid said, was suggested by Mohd Isa in an April 2014 board meeting. He said the former Felda chairman claimed that former prime minister Datuk Seri Najib Razak had told him he wanted Felda to review its decision after the rejections.

Meanwhile, during cross-examination by Mohd Isa’s lawyer, Datuk Salehuddin Saidin, Ikhwan disagreed with the counsel’s suggestion that he was conspiring with Zahid and one Azizi Abd Wahab — who had recommended or suggested the purchase of the hotel by FIC to Zahid — to implicate Mohd Isa.

The lawyer also pointed out that Ikhwan had met with Zahid and Azizi after FIC rejected Gegasan Abadi’s offer twice, though the offer letter was addressed to Mohd Isa.

Salehuddin: All these transactions were done through Zahid, including the reduction in offer from RM200 million of the property to RM165 million?

Ikhwan: I agree.

Salehuddin: I put it to you that it is the three of you (Zahid, Ikhwan and Azizi) who conspire in the purchase of the hotel and to implicate Isa.

Ikhwan: I disagree.

Salehuddin: Then why did you address the first letter to Isa (the Felda chairman) but after it was twice rejected you met Zahid before writing a revised offer letter to Isa? The decision to lower it was made after the meeting among the three of you?

Ikhwan: I disagree.

The cross-examination of the witness will continue before Justice Mohd Nazlan Mohd Ghazali when the case resumes on Nov 26.