Felcra not authorised to invest in shares - witness

A witness told the Kuala Lumpur Sessions Court today that Felcra Berhad is not authorised to invest in shares and the matter requires approval from the Minister of Finance Incorporated (MKD).

Former Felcra Berhad 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 the approval of MKD 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 of directors and verified by the then rural and regional development ministry (then).

“For foreign investment, whether on a joint venture or on its own, Felcra needs to get approval from the Finance Ministry,” he added.

Adnan, who is the second prosecution witness, 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 on the second day of the trial of a corruption case involving Kinabatangan Member of Parliament Bung Moktar Radin and his wife, actress Zizie Ezette A Samad.

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 Berhad” (Increase in authority of Board of Directors to approve Felcra Berhad Core Business-related investments”).

He also confirmed Bung Moktar’s appointment as Felcra's non-executive chairperson 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 Berhad's chairperson is a non-executive post that is appointed by MKD and paid monthly and meeting allowances.

Questioned by Mohamad Fadhly whether there is a difference between a non-executive chairperson and an executive chairperson, Adnan said “Yes”.

To a question by deputy public prosecutor Roslan Mat Nor 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 it 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 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 at that time the non-executive chairperson of Felcra, 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 Berhad at No. 262-265, Jalan Bandar 12, Taman Melawati here between 12.30 pm and 5 pm on June 12, 2015.

For the second charge, Bung Moktar was charged with receiving RM262,500 in bribes for himself from the same individual, Madhi, through Public Islamic Treasures Growth Fund (PITGF) account number 044797816 registered under Zizie Ezette’s name for the same purpose.

Bung Moktar is also accused of obtaining a RM337,500 bribe from Public Mutual investment agent, Norhaili Ahmad Mokhtar, 42, via Public Ittikal Sequel Fund (PITSEQ) account number 044797824 registered under Zizie Ezette for the same purpose.

Both offences were allegedly committed at the same location at 12.16 pm and 12.28 pm on June 19, 2015, and all charges were made under Subsection 17(a) of the MACC Act and can be sentenced under Section 24 (1) of the same act which provides for a jail term not exceeding 20 years and fine not less than five times of the bribe amount or RM10,000 whichever is higher upon conviction.

Zizie Ezette also pleaded not guilty to the three charges of abetting her husband on the same matter at the same place, dates and time under Section 28(1) (c ) of the MACC Act and can be punished under Subsection 24 (1) of the same act which carries a prison term of not more than 20 years, and fine not less than five times of the bribe or RM10,000 whichever is higher if found guilty.

The hearing continues before judge Rozina Ayob on Jan 10. - Bernama