Bung Moktar sought approval to invest RM150 mln in unit trust from Finance Ministry

KUALA LUMPUR: The Sessions Court was today told that Datuk Seri Bung Moktar Radin had submitted an application letter from the Federal Land Consolidation and Rehabilitation Authority (Felcra) Berhad to invest RM150 million in the Public Mutual unit trust whereas the Felcra Board of Directors only agreed to invest RM50 million.

Former Treasury deputy secretary-general for investments Datuk Seri Dr Mohmad Isa Hussain, 61, said that during the board’s meeting on Nov 24, 2014, which he, Bung Moktar and several other members attended, it was agreed that RM50 million would be invested in the unit trust.

Mohmad Isa said he received a letter of application for RM150 million investment on March 3, 2015 that was signed by Bung Moktar himself (a non-executive chairman of Felcra then) to be submitted to then Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah for approval.

“The application was approved by Ahmad Husni, which means Felcra could continue with the unit trust investment proposal applied for because total investments exceeding RM30 million needed to be referred to the Minister of Finance Inc (MoF Inc) for a final decision.

“Regarding the total investment of RM150 million as stated (in the letter), at that time I assumed that the total was the same as what was presented at the board meeting on Nov 24, 2014 and I do not know if the sum had been altered or was not the same as was agreed at the board meeting,” he said.

The 19th prosecution witness said this while reading his witness statement during the main examination by Deputy Public Prosecutor Datuk Faridz Gohim Abdullah at the graft trial of Bung Moktar and his wife, actress Zizie Ezette Abdul Samad.

Mohmad Isa said that to his knowledge if there was a change in the amount to be invested in the unit trust in Public Mutual, whatever changes in the amount should be referred back to the Felcra board.

However, during the notification of the unit trust’s investment performance report at the board meeting in August 2015, he found that the investment performance was not encouraging and the information provided was suspicious.

“As chairman of the Felcra audit team, I then raised the matter (the issue of the RM150 million investment) at the 54th Felcra Berhad Audit Committee meeting dated Sept 15, 2015 and asked for an investigation into the matter.

“After the results of the special investigation were tabled, I realised that the total investment agreed was not the same as the original decision, that is from RM50 million to RM150 million,” he said.

On May 3, 2019, Bung Moktar, 61, pleaded not guilty to two charges of accepting bribes amounting to RM2.2 million and RM262,500 as an inducement to obtain Felcra’s approval to invest RM150 million in Public Mutual unit trust.

Bung Moktar, as the then non-executive chairman of Felcra Berhad, was charged with accepting the bribes from Public Mutual investment agent Madhi Abdul Hamid, 38, through his wife, Zizie Izette at Public Bank's Taman Melawati branch here between 12.30 pm and 5 pm on June 12, 2015.

The Kinabatangan MP also pleaded not guilty to accepting a cash bribe for himself of RM335,500 from another Public Mutual investment agent Norlaili Ahmad Mokhtar, 42, under the name Zizie Izette for the same reason, at the same place on June 19, 2015.

Zizie Ezette also pleaded not guilty to the three charges of abetting her husband on the same matter at the same place, date and time.

The hearing before Judge Rozina Ayob continues on June 23.

-- BERNAMA