Kinabatangan MP Bung Moktar Radin today acknowledged that Felcra Bhd’s board invited only Public Mutual unit trust agent Norhaili Mokhtar to present a proposal before sealing a RM150 million investment 10 years ago.
Testifying in the sessions court, Bung said the proposal had been vetted and approved by the Minister of Finance Incorporated (MOF Inc), Felcra’s parent entity, following a three-month review.
The former Felcra non-executive chairman also said the exact sum to be invested was determined by MOF Inc, and not by the company’s board of directors.
Asked by deputy public prosecutor Low Chin How whether the board’s failure to consider other investment options impaired the due diligence process, Bung said the responsibility ultimately fell on MOF Inc, as Felcra’s owners.
Low: Do you agree that one of the due diligence steps that could have been taken was to make a comparison of Public Mutual’s proposal with other proposals?
Bung: I’m sure MOF Inc did its due diligence for three months, including by calling Norhaili to ensure the investment was profitable.
Low: No other company was invited to make their presentation (at that board meeting)?
Bung: Only Public Mutual was invited to present.
Low: No other company was invited to make a presentation even after that meeting?
Bung: Maybe they were not interested.
Low: If Felcra’s board wanted to make the right decision, shouldn’t other companies have been invited to propose their own investment plan?
Bung: I don’t agree because our company (Felcra) doesn’t look for investment firms. They must find us.
Bung faces two charges of receiving bribes of RM2.2 million and RM262,500 as an inducement to obtain Felcra’s approval to invest RM150 million in Public Mutual unit trusts.
He is alleged to have accepted bribes from Norhaili’s partner Madhi Hamid through his wife, Zizie Izette Abdul Samad, at the Taman Melawati Public Bank branch between 12.30pm and 5pm on June 12, 2015.
He faces a separate charge of receiving RM337,500 from Norhaili under Zizie’s name at the same bank on June 19, 2015.
Zizie faces three charges of abetting Bung in the commission of the alleged offences.
The hearing before judge Rosli Ahmad continues on Friday.
