KUALA LUMPUR: Felcra Berhad (Felcra) can only invest in its core business which is farming and milling, the Sessions Court was told today.
Former Felcra investment general manager Adnan Yusof said they could not invest in trade securities without the consent of Ministry of Finance Incorporated (MoF Inc).
“Felcra board of directors do not have any decision power to invest in trade securities as they need a green light from MoF Inc.
“Felcra was established by the government in 1966 to transform undeveloped lands so that it could be an asset in farming industry.
“Thus, we are only able to invest in farming and milling industries which related to our mission,” he said, testifying in the corruption trial involving Datuk Seri Bung Moktar Radin and his wife Datin Seri Zizie Izette.
The couple is charged with corruption involving RM2.8 million to obtain approval for Felcra to invest RM150 million in Public Mutual Berhad Unit Trust.
Adnan, who is the second prosecution witness, said the board of directors could also only approve investment of not more than RM125 million.
“Any amount exceeding RM125 million, Felcra needs to get approval from MoF Inc,” he said.
On May 3, the outspoken Kinabatangan Member of Parliament pleaded not guilty to three counts of receiving a total of RM2.8 million in bribes for obtaining approval for Felcra to make a RM150 million investment in the unit trust products of Public Mutual Bhd.
Actress and producer Zizie Izette pleaded not guilty to three counts of abetting her husband on the same offences, at the same place, date and time under Section 28(1)(c) of the Malaysian Anti-Corruption Commission (MACC) Act 2009.
The offence is punishable with imprisonment of not more than 20 years and a fine of not less than five times the amount of the bribe, or RM10,000, whichever is higher, upon conviction.
The trial continues on Jan 10 before judge Rozina Ayob.