Najib claims ignorance about whether SRC loans, govt guarantees were tabled to Parliament

KUALA LUMPUR (Feb 3): Former prime minister Datuk Seri Najib Razak (pictured) claimed he was unaware whether the Parliament was informed about the RM4 billion loans from Retirement Fund Inc (KWAP) to SRC International Sdn Bhd and the government guarantees approved by cabinet to back them.

During cross-examination by ad-hoc prosecutor Datuk V Sithambaram today, Najib said he could not remember whether the second government guarantee for a subsequent RM2 billion loan from KWAP to SRC was tabled to the Dewan Rakyat.

In January, Sithambaram had asked the former premier to check whether the Dewan Rakyat had been informed about the government guarantee, and Najib said he would get back to the court on the matter.

Najib said he checked with his lawyers and could not find any verification whether the loans and guarantees were indeed presented to the Parliament, although he said it was the duty of the functionaries to ensure they were tabled.

"Whether the government guarantee was tabled in Parliament, we have no verification, but it is the duty of functionaries to do so as a matter of course," he said, claiming that he assumed it was tabled, given that the government guarantee was approved.

Sithambaram: So what you mean once [the approval] is done, you take it that it was laid [before Parliament]?

Najib: Yes, that has always been the case.

When Sithambaram suggested that it is the minister's responsibility to table it, Najib disagreed.

"We are unable to show handsard to confirm it is laid before the Dewan Rakyat. It is the duty of the staff to ensure that it is done," he said.

When asked by Sithambaram if this government guarantee was never laid or tabled before the Dewan Rakyat, the former prime minister said he does not know.

However, he agreed with the ad-hoc prosecutor that informing the Dewan Rakyat is for all to know and transparency purposes.

According to the Loans Guarantee (Bodies Corporate) Act 1965 — which is an Act to authorise the government to guarantee loans raised by certain corporate bodies — any guarantee given under this section must be given in writing and may be signed on behalf of the government by a minister.

The minister is then required by the Act to present the statement of guarantee together with a copy of the loan agreement to the Dewan Rakyat as soon as possible.

However, a clause in subsection 4 mentions that the tabling to the parliament may be exempted if the guarantee or the agreement is certified by the minister to contain confidential matters.

Hence, the requirement to table to the parliament shall not apply to such a guarantee until and unless those matters cease to be confidential.

Najib is currently testifying at his SRC trial, where he faces seven charges involving the embezzlement of RM42 million from the company.

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