A witness told the sessions court today that Felcra Bhd is not authorised to invest in shares, and that such matters require approval from the Minister of Finance Incorporated (MKD).
Former Felcra general manager (investment) Adnan Yusof, 60, said the company’s board of directors could not make any decision on the matter without the approval of MKD as any category of stock investment without its approval is limited to only its core business, which is plantation and manufacturing.
“Domestic investments in excess of RM125 million need the approval of the board and it needs to be verified by the Rural and Regional Development Ministry.
“For foreign investment, whether on joint ventures or on its own, Felcra needs approval from the Finance Ministry,” he added.
Adnan, who is the second prosecution witness in the corruption case involving Kinabatangan MP Bung Moktar Radin and his wife, actress Zizie Ezette A Samad, said this when reading out his witness statement during examination-in-chief by deputy public prosecutor from the Malaysian Anti-Corruption Commission (MACC), Mohamad Fadhly Mohd Zamry.
Adnan, who was Felcra company secretary from 1998 to 2014, said matters pertaining to authorisation of approval could be referred to a Finance Ministry letter dated March 18, 2014, with the title “Peningkatan Had Kuasa Lembaga Pengarah Untuk Meluluskan Pelaburan Berkaitan Core Business Felcra Bhd” (Increase in authority of board of directors to approve Felcra Bhd’s core business-related investments”.
He also confirmed Bung Moktar’s appointment as Felcra non-executive chairman on July 17, 2013.
“His term of service was for three years, from July 17, 2013 to July 16, 2016,” he said, adding that Felcra chairman is a non-executive post appointed by MKD and is paid monthly and for meeting allowances.
Questioned by Fadhly on whether there is a difference between a non-executive chairman and an executive chairman, Adnan said “yes”.
To a question by deputy public prosecutor Roslan Mat Nor on whether Felcra’s objective, after its incorporation, was to consolidate and rehabilitate idle land, Adnan said “yes”.
Roslan: Can you explain the difference in Felcra before and after its incorporation?
Adnan: Prior to its incorporation, Felcra was a government body that was not allowed to engage in business, but after its was incorporated, Felcra could generate its own income and increase productivity, and was no longer a burden to the government.
Roslan: Was the role of the board of directors different after it was incorporated?
Adnan: Before it was incorporated, Felcra was answerable to the government and Parliament, but after the incorporation, all of it became the responsibility of the board of directors.
Yesterday, before the trial began, Bung Moktar maintained his not guilty plea to three charges of corruption, which were read out to him again.
According to the first charge, Bung Moktar, who was Felcra’s non-executive chairman at the time, was charged with taking a bribe of RM2.2 million from Public Mutual investment agent Madhi Abdul Hamid, 38, through his wife, Zizie Ezette.
He was accused of committing the offence as an inducement to obtain approval from the finance minister II for Felcra to invest RM150 million in Public Mutual unit trust products.
The offence was allegedly carried out at Taman Melawati branch of Public Bank Bhd at No. 262-265, Jalan Bandar 12, Taman Melawati, between 12.30pm and 5pm on June 12, 2015.
For the second charge, Bung Moktar was charged with receiving RM262,500 in bribes for himself from the same individual through an account under Zizie Ezette’s name.
Bung Moktar was also accused of obtaining a RM337,500 bribe from Public Mutual investment agent, Norhaili Ahmad Mokhtar, 42, to an account registered under Zizie Ezette.
Zizie Ezette also pleaded not guilty to the three charges of abetting her husband.
The hearing continues before judge Rozina Ayob on January 10.
Related report: Jan 2, Bung-Zizie Graft Trial: Marriage Status Confirmed