Kuala Lumpur: Datuk Seri Khalid Mohamad Jiwa, the husband to singer Datuk Seri Siti Nurhaliza, told the High Court today that Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi had provided RM10 million to his friend's company Armada Holdings Sdn Bhd in 2015 as an investment.
Khalid, better known by the moniker Datuk K, was testifying as the seventh defence witness for Zahid in the latter's trial involving 47 charges.
The 64-year-old businessman was allowed by the judge to wear tinted glasses in the courtroom on medical grounds. He said he had undergone eye surgery and the dark glasses were to prevent dry eyes from the air-conditioner and from light.
Khalid said he had first got to know Zahid while working as a manager in the loan division of a Bumiputera bank now known as CIMB.
He had known Zahid for nearly 30 years and that their long length of acquaintance resulted in him being close with Zahid and knowing the latter's character.
“Among his character which I know is that he is someone who is generous, a philanthropist and likes to help when someone needs help,” he testified.
Khalid said both of them had a common interest in motorcycles and had participated in several convoys involving high-powered motorcycles, including touring in several states in peninsular Malaysia and also in Cape Town, South Africa.
Khalid said he and his wife had also gone on umrah together with Zahid and the latter's wife Datin Seri Hamidah Khamis on several occasions, and usually during the last 10 nights of the Ramadan month.
Khalid then testified about how Zahid's charitable organisation Yayasan Akalbudi ended up giving a RM10 million cheque in 2015 to Khalid's friend and business partner Datuk Wasi Khan @ Wasiyu Zama Israr's company Armada Holdings, in order to have sufficient start-up capital to bid for a contract to supply coal from Indonesia to a subsidiary of energy producer Tenaga Nasional Berhad called TNB Fuel Services Sdn Bhd.
Asked by Zahid's lawyer Hamidi Mohd Noh to confirm that the RM10 million from Yayasan Akalbudi to Armada being a form of investment since there was a “return” on the purported investment, Khalid said that this was a form of investment as the company had returned the money to ensure that Yayasan Akalbudi did not suffer losses.
“Secondly, we applied from Datuk Seri Zahid for help to reduce the paid up capital from RM10 million to RM5 million, but Datuk Seri Zahid is kind enough to give an advance to the company RM10 million instead of RM5 million, and that is an investment from Yayasan Akalbudi,” Khalid said.
When Hamidi suggested this was consistent with his testimony that Zahid likes to help people in need of aid, Khalid said this was his experience as long as he had known the accused.
Wasi Khan was the 21st prosecution witness in this trial.
In his testimony previously, Wasi Khan said he had received a RM10 million cheque from Yayasan Akalbudi during an 2015 meeting with Zahid in Parliament, but there was no letter of agreement for the loan between them as it was based on trust.
He had said Zahid had offered the short-term loan to Armada Holdings based on his friendship with Khalid and due to the company’s potential.
Wasi Khan had said that Armada Holdings had issued two February 12, 2016 cheques for the sum of RM10 million and for a 4 per cent interest amounting to RM69,722.65, but had also said there was no "black-and-white" letter signed between Armada Holdings and Yayasan Akalbudi for the repayment of the "loan" of RM10 million.
Zahid, who is also Umno president and Barisan Nasional chairman, is facing 47 charges in this trial.
The 47 charges are namely, 12 counts of criminal breach of trust in relation to over RM31 million of charitable foundation Yayasan Akalbudi’s funds, 27 counts of money laundering, and eight counts of bribery charges of over RM21.25 million in alleged bribes.
The 12 counts of criminal breach of trust is in relation to the alleged misappropriation of Yayasan Akalbudi funds, namely RM1.3 million via 43 cheques for his and his wife’s credit card bills; RM107,509.55 via three cheques for vehicle insurance and road tax for 20 privately-owned vehicles; a RM1.3 million cheque to the police’s football association; a RM10 million cheque for a loan to Armada Holdings Sdn Bhd; RM360,000 via two cheques to political consultancy firm TS Consultancy & Resources; and over RM17.9 million of funds transferred from Yayasan Akalbudi to law firm Lewis & Co.
Yayasan Akalbudi was founded with the purported objectives of receiving and administering funds for the eradication of poverty and enhancing the welfare of the poor.
