Finance Ministry approves RM150 mln unit trust investment - Witness

KUALA LUMPUR: The Sessions Court was today told that the Finance Ministry agreed to approve the RM150 million investment by the Federal Land Consolidation and Rehabilitation Authority (Felcra ) in Public Mutual Berhad unit trust after three investment proposal papers were submitted by the Member of Parliament for Kinabatangan Datuk Seri Bung Moktar Radin.

Former Felcra Berhad group chief financial officer (CFO) Mohd Azmy Abu Samah, 54, said Bung Moktar who was then the non-executive chairman of the agency submitted three working papers involving investments of RM50 million, RM100 million and RM150 million for the ministry's consideration.

Mohd Azmy said initially, Bung Moktar met with Datuk Seri Ahmad Husni Hanadzlah who was then Finance Minister II in Parliament and handed over one proposal paper on RM50 million investment in unit trust.

"Nonetheless, the Finance Minister II asked Bung Moktar why not invest everything that refers to pension funds of Felcra," said the witness during an examination-in-chief by deputy public prosecutor Mohd Sophian Zakaria at the corruption trial involving Bung Moktar and his wife, Datin Seri Zizie Izette Abdul Samad.

According to the 26th witness, he later told Bung Moktar, it depended on Minister of Finance Incorporated (MKD) who is also a shareholder and advised Bung Moktar not to invest all of it.

The witness said MKD however approved the investment of RM150 million in a letter dated April 23 2015.

Questioned by Mohd Sophian on whether the RM150 million investment in Public Mutual unit trusts was earlier tabled to Felcra board of directors, Mohd Azmy replied," No need, nonetheless any investment should be reported to the board of directors".

However, the witness said the transfer of RM150 million for unit trust investment was not reported to the board of directors before the money transfer was made.

"RM150 million was credited into the account of Public Mutual and I also informed Bung Moktar on the matter in writing," Mohd Azmy.

The hearing which was held before Judge Hakim Rozina Ayob continues on Aprii 6.

On May 3, 2019, Bung Moktar, 64, pleaded not guilty to two charges of receiving bribes amounting to RM2.2 million and RM262,500 as an inducement to obtain the approval of Felcra to make a RM150 million investment in Public Mutual unit trust.

Bung Moktar who was the non-executive chairman of Felcra then allegedly received the bribes from Madhi Abdul Hamid through Zizie Izette at the Public Bank branch in Taman Melawati here between 12.30 pm and 5 pm on June 12 2015.

He also pleaded not guilty to receiving cash bribes of RM335,500 from unit trust consultant Norhaili Ahmad Mokhtar under Zizie Izette's name for the same reason at the same place on June 19 2015 while Zizie Izette, 44, pleaded not guilty to three charges of abetting with her husband on the matter at the same place, date and time.

-- BERNAMA