Former Felcra chief financial officer (CFO) Azmy Abu Samah said Bung met then second finance minister Ahmad Husni Hanadzlah to submit the proposals when Parliament was in session in late 2014.
He said Bung presented three proposals for an investment of RM50 million, RM100 million or RM150 million. The Felcra board, of which Bung was its non-executive chairman, had earlier only approved a RM50 million investment in the unit trust fund.
Azmy said the Minister of Finance Incorporated (MoF Inc) was the single shareholder of Felcra, and Husni was then in charge of all such government-linked companies.
The 26th prosecution witness said that during a meeting with Bung, the accused told him that Husni had asked whether they could invest all the money from Felcra’s pension fund, where up to RM300 million could be utilised.
“My reply was that it was up to MoF Inc, the shareholder,” Azmy said, adding that he also advised Bung not to invest the entire sum in a unit trust fund.
Azmy said MoF Inc approved the RM150 million investment via a letter dated April 23, 2015.
He said Bung then asked him when the investment would begin but he replied that it would have to wait first.
“This is because some of the funds were in fixed deposits that had yet to mature,” he said when examined by deputy public prosecutor Sophian Zakaria.
Azmy said MoF Inc’s approval was conveyed to the board after the investment was completed.
“The MoF Inc approval letter was addressed to the board chairman, who was appointed by the shareholder,” he said.
Azmy said unit trust consultant Norhaili Ahmad Mokhtar had complained to Bung during a meeting at a hotel in May 2015 that there was no fresh board resolution to invest in Public Mutual Bhd.
“He (Bung) told me to ‘adjust lah’ (be flexible),” Azmy said, adding that he agreed to comply with the request.
He said his staff prepared the resolution to invest RM150 million based on a format provided by Bung.
Bung, 64, who is also the Sabah deputy chief minister, is facing two charges of accepting bribes amounting to RM2.2 million and RM262,500 as an inducement to obtain Felcra’s approval to invest in the unit trust fund.
He is accused of accepting bribes through Zizie at Public Bank’s Taman Melawati branch here between 12.30pm and 5pm on June 12, 2015.
He also pleaded not guilty to accepting RM335,500 in cash as a bribe from Norhaili through Zizie for the same reason and at the same place on June 19, 2015.
Zizie, 44, pleaded not guilty to three charges of abetting her husband in the matter at the same place, date and time.
The hearing before judge Rozina Ayob continues on April 6.