Najib allegedly gave the nod for BN man’s firm to bypass rules and claim payment in RM1.25 billion project.
Datuk Seri Mahdzir Khalid, the education minister from July 2015 to May 2018, said Jepak Holdings Sdn Bhd managing director Saidi Abang Samsudin had approached him after encountering problems seeking funds from the Education Ministry.
Mahdzir said Saidi had told him in July 2017 that the company had been unable to obtain interim claims for electricity supply services to Sarawak schools through diesel generators since January 2017 as the Education Ministry’s finance division had refused to process the claims due to incomplete documentation following non-compliance with procedures for price negotiations.
Mahdzir said he told Saidi to comply with the financial procedures but said Saidi then proceeded to belittle him as the education minister and as an old friend since the 1990s over Mahdzir’s inability to help him over this.
“Then, Saidi demanded me to help and told me he would complain to Datuk Seri Najib Razak, Datin Seri Rosmah and Datuk Rizal Mansor,” Mahdzir said.
Mahdzir said that Rosmah’s then aide Rizal met with him several days later in Putrajaya to request that he help Jepak Holdings obtain payments from the government, but he told Rizal such matters must go through the Finance Ministry.
“Then, Datuk Rizal Mansor asked me to write a letter applying for exemption from Datuk Seri Najib Razak as the first finance minister,” he said.
Mahdzir said he personally handed over a letter on July 19, 2017 to Najib at around 12pm to 1pm after a Cabinet meeting, with the letter asking for Najib’s special exemption of incomplete documentation such as documents from the Finance Ministry to approve the project’s costs.
“I told Datuk Seri Najib Razak that this letter is related to Jepak and there are problems for the payment process. I also asked Datuk Seri Najib Razak to give special exemption on financial procedures to enable payment to be made to Jepak,” he said, noting that Najib had the power to do so as the finance minister.
Mahdzir said Najib had then made a handwritten note or minute on the first page of the letter to the Finance Ministry’s government procurement division secretary Datuk Othman Semail stating “Bersetuju diberikan pengecualian khas seperti dipohon. Sila uruskan. (Agree to give special exemption as requested. Please handle.)”, adding that Najib had also signed the handwritten minute.
Mahdzir said he had then handed over the letter to Education Ministry secretary-general Datuk Seri Alias Ahmad to handle.
Mahdzir was testifying today as the fifth prosecution witness against Rosmah in the latter’s corruption trial, where she is accused of seeking RM187.5 million in bribes and taking bribes totalling RM6.5 million from Saidi in exchange for helping Jepak Holdings get the RM1.25 billion project.
Throughout his testimony, Mahdzir had spoken of how Rosmah, Rizal, Najib and even Saidi and his business partner Rayyan Radzwill Abdullah had repeatedly pressured him to expedite the granting of the contract to Jepak Holdings.
Mahdzir had previously spoken of his initial refusal and resistance in giving the project to Jepak Holdings which was alleged to be involved in car rentals and as a sub-contractor for the electricity supply to the Sarawak schools.
He also spoke today of how he doubted Jepak Holdings’ capability to take over the electricity supply services that was previously provided by 30 contractors and also the company’s failure to provide detailed financial and operation plans while pressing for the contract award.
Mahdzir said he had eventually caved in to constant pressure from the five and complied with then prime minister Najib’s orders to award the contract to Jepak Holdings, even before certain procedures had been met by the company.
Mahdzir also told the High Court that he did not accept any bribe from Saidi, adding that he had no pressing need to ask for money from him.
Rosmah’s lawyer Jagjit Singh then questioned Mahdzir on the Malaysian Anti-Corruption Commission’s (MACC) investigation against him over claims that he had received RM50,000 as “expenses” from Saidi for his family’s vacation to London in 2015.
The lawyer also showed Mahdzir a news report in Nov 2018 that claimed Mahdzir would be charged in court after the MACC recorded his statement.
Jagjit: You sold your credibility and honesty to SPRM (MACC), so they would not prefer two charges against you?
Mahdzir: I disagree.
Jagjit later brought up the matter again, suggesting: “I further put it to you that you struck a deal with the prosecution and also MACC so they will withdraw the corruption charges, in the similar manner as they have done with Rizal Mansor, agree?”
“Disagree,” Mahdzir replied.
Rosmah’s bribery trial before High Court judge Mohamed Zaini Mazlan resumes tomorrow morning, with her lawyer expected to continue cross-examining Mahdzir.