Former finance minister II Datuk Seri Ahmad Husni Hanadzlah is pictured at the Kuala Lumpur High Court August 6, 2019. — Picture by Firdaus Latif

KUALA LUMPUR, Aug 6 — Datuk Seri Najib Razak refused to approve an official government-led delegation to Switzerland when RM3 billion belonging to SRC International Sdn Bhd was frozen by the Swiss government over alleged money-laundering offences in 2013, the High Court was told today.

Former second minister of finance Datuk Seri Ahmad Husni Mohamad Hanadzlah, who is the prosecution’s 56th witness, testified that he met with Najib and sought the latter’s permission to bring a delegation comprised of the Finance Ministry, Bank Negara Malaysia and the Retirement Fund Incorporated (KWAP) to clarify the matter with the Swiss authorities.

“I was informed there were invested funds of SRC International that was kept in a bank in Switzerland where the total amount was more than RM3billion that was frozen by the Swiss government for money laundering related offences.

“I then went to meet with Datuk Seri Najib Razak and sought his permission to bring a delegation to submit documents that the funds were in fact a loan from KWAP.

“However, the honourable prime minister did not give his consent for me to act so,” he said in his witness statement.

SRC International previously obtained two loans totalling RM4 billion from KWAP in 2011 and 2012 — the first RM2 billion when it was a 1Malaysia Development Berhad (1MDB) subsidiary while the second RM2 billion was after the company’s ownership was transferred to the Finance Ministry’s Minister of Finance Incorporated (MoF Inc).

Ahmad Husni said he was initially informed by officers from the Finance Ministry over the frozen funds in Switzerland.

“We wanted to bring the money back. At that time the Swiss authorities may have not known the money was from KWAP,” he said.

When asked whether Najib provided any reasons for his disapproval, Ahmad Husni said he was not given one.

“Datuk Seri Najib did not agree... did not allow, so then we did not go.

“He (Najib) just didn’t agree,” Ahmad Husni added.

SRC International board chairman and the 39th prosecution witness Tan Sri Ismee Ismail previously confirmed to court that loans from KWAP to SRC International were deposited at Swiss-bank BSI (renamed EFG International) headquartered in Lugano, Switzerland.

Ahmad Husni said he was informed by officers from MoF Inc that excluding the RM3 billion kept in Switzerland, the remainder of KWAP’s loan was used for natural resources investments in Jawa, Indonesia and Mongolia.

Najib is currently on trial seven charges of alleged abuse of position, money-laundering and criminal breach of trust over RM42 million of funds from SRC International, a former subsidiary of 1Malaysia Development Berhad (1MDB).

The trial before High Court judge Mohd Nazlan Mohd Ghazali resumes on Thursday morning.