KUALA LUMPUR (April 7): Umno’s working secretary and public official Datuk Mohd Sumali Reduan said that Umno would hypothetically accept US$10 million from Colombian drug lord Pablo Escobar if he gave them a donation. 

Sumali, who is a witness for Umno in a RM19.5 million civil suit brought by SRC International Sdn Bhd and its two subsidiaries against Umno and Umno Selangor, was answering questions from SRC’s counsel Razlan Hadri Zulkifli.

Razlan: Anyone who gives you money, you will not investigate where the funds come from? 

Sumali: Yes, correct. 

Razlan: So, if I am Pablo Escobar, the biggest drug dealer in Colombia, and I want to give US$10 million to you, you won’t investigate — and just take it? 

Sumali: Correct. We will take it if it is given. 

Sumali said this as Razlan had been asking him during cross-examination about whether it was right for Umno and Umno Selangor to accept a total of RM19.5 million from SRC before verifying its source. 

Sumali said that as long as the donations were in line with Umno’s constitution and that they are given genuinely, then Umno will accept them. This is because they carry out a lot of charitable works.  

Umno had received RM16 million, while Umno Selangor had received RM3.5 million, via cheques, from former prime minister Datuk Seri Najib Razak in April 2015. Najib was Umno president at the time, and had given this money, which had originated from SRC, to Umno. 

Sumali said that SRC’s claims in the case are clearly directed at its directors, and Ihsan Perdana Sdn Bhd — another subsidiary of SRC. He added that if these entities are found to be in breach of trust, then they must recompense SRC. 

“If there was a breach of trust found on the directors, then they should be the ones to pay back the RM16 million to SRC, and not Umno,” he said. 

Sumali said that Umno was never involved in the running of SRC, and therefore, SRC’s claim that Umno had knowledge of the source of the RM16 million was false. 

“To be honest, Umno is a bona fide donation recipient from Jendela Pinggiran Sdn Bhd (JPSB — one of SRC’s subsidiaries). Therefore, Umno should not be responsible for the actions of the directors of SRC and its two subsidiaries,” Sumali said. 

He said that the donations and contributions amounting to RM16 million received by Umno from JPSB in April 2015 had already been spent by the party for implementation of activities and community welfare programmes. 

“Umno is not, [and] has never enriched itself, nor become rich unfairly, from receiving the RM16 million,” he said. 

In this case before judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan, the plaintiff (SRC) claims that JPSB — an SRC unit, allegedly set up to carry out corporate social responsibility (CSR) activities and received RM43.96 million of SRC funds in 2015 — was used as Najib’s “slush fund”. 

The former prime minister is now serving jail time after having been found guilty in 2022 of criminal breach of trust, money laundering, and abuse of power involving RM42 million of SRC funds. Originally sentenced to 12 years in jail and fined RM210 million, his jail sentence was halved by the Pardons Board in February last year, while the fine was reduced to RM50 million.

Razlan said Umno and Umno Selangor had received a total of RM19.5 million of SRC funds.

This money was part of the RM43.96 million that SRC had first transferred to Gandingan Mentari Sdn Bhd (a wholly owned subsidiary of SRC), and subsequently to JPSB, without the approval of SRC’s board of directors.

Gandingan Mentari was involved in transferring funds to political parties. Between April and July 2015, RM43.96 million was transferred from SRC to Gandingan Mentari, and then to JPSB.

The RM43.96 million that JPSB received from SRC was part of the RM4 billion that Retirement Fund (Incorporated) (KWAP) had loaned to SRC between 2011 and 2012.

Of the RM4 billion, RM3.6 billion was transferred out to SRC’s foreign subsidiary incorporated in the British Virgin islands — namely SRC — to undertake foreign investment activities in the energy and resources sector.

The remaining RM400 million was retained by SRC in Malaysia for working capital in the country. This was where the RM43.96 million came from. 

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