Businessman Khalid Jiwa, commonly known as “Datuk K”, said he had accompanied Armada Holdings Sdn Bhd’s then CEO, Wasi Khan @ Wasiyu Zama Israr Ahmad, to meet Zahid.

Khalid is the husband of pop diva Siti Nurhaliza Tarudin.

At the time, Zahid was the deputy prime minister and home minister under the Barisan Nasional administration.

Khalid said he arranged for the meeting after being informed that Wasi’s company needed RM10 million to fulfil TNB’s minimum paid-up capital requirement for tenderers.

“Wasi actually wanted Zahid to interfere so that TNB could reduce the paid-up capital from RM10 million to RM5 million,” the eighth defence witness said in his witness statement.

“At the end of the discussion, Zahid agreed to provide RM10 million,” he said.

Wasi later told Khalid he had received a cheque for RM10 million from the foundation.

According to Wasi, Khalid said he knew Yayasan Akalbudi was managed by Zahid and that the money had been withdrawn from a fixed deposit belonging to the foundation.

It was also revealed by Zahid during his testimony that the company did not win the tender and the money was returned.

Khalid also said he told Wasi to compensate the foundation for its “loss of opportunity”.

He said RM69,722.65 was eventually paid to the foundation as a return on investment and that the money was used to carry out charitable activities.

“The RM10 million was returned together with interest and (the foundation) did not incur any losses,” he said.

The prosecution says the RM10 million was a loan as the foundation is prohibited by its constitution from entering into any business venture.

The defence, however, claims it was an investment.

Cross-examined by deputy public prosecutor Dusuki Mokhtar, Khalid maintained the RM10 million was an investment.

“The RM69,722.65 is the return on investment as (the foundation) had liquified the RM10 million that was kept as a fixed deposit,” he said.

Zahid is accused of 47 counts of money laundering and criminal breach of trust (CBT) involving millions of ringgit from the foundation and accepting bribes for various projects during his tenure as the home minister between 2013 and 2018.

Twelve of the charges are for CBT, eight for corruption and the remaining 27 for money laundering.

The trial before Justice Collin Lawrence Sequerah continues.