Isa Samad trial: Najib orders purchase of Merdeka Palace Hotel, says witness

KUALA LUMPUR (Jan 13): The High Court was told today that former Felda chairman Tan Sri Mohd Isa Abdul Samad was instructed by Datuk Seri Najib Tun Razak to proceed with the purchase of Merdeka Palace Hotel and Suites in Kuching, Sarawak, despite the proposal on the hotel purchase having been rejected by the board of directors of Felda Investment Corporation Sdn Bhd (FICSB).

Mohd Isa’s former special officer, Muhammad Zahid Md Arip, 53, when reading out his witness statement, said Mohd Isa was instructed to proceed with the hotel purchase through a phone call by the former prime minister in March 2014 when he was at the Parliament lobby.

Muhammad Zahid said he overheard Mohd Isa said during the telephone conversation that the (FICSB) BOD (board of directors) had rejected the proposal, but that he (Mohd Isa) would proceed with it as instructed.

“After that, Mohd Isa turned to me and said ‘Yid (Muhammad Zahid), the prime minister (Najib) has ordered (me) to reopen (the case on the hotel purchase)... now, (I) need to call up Mohd Zaid Abdul Jalil (FICSB chief executive officer)”.

“I was shocked and asked an Tan Sri Isa whether he was certain that the instruction came from the PM (prime minister).  I know that Tan Sri Isa was referring to the then prime minister,” he added.

Muhammad Zahid, who is the 21st prosecution witness, said that the following day, after the meeting between Mohd Zaid and Mohd Isa, he went to see Mohd Zaid.

“I asked Zaid, ‘How are you going to reopen it, when the BOD has already rejected it? Mohd Zaid replied, ‘What to do, it’s an instruction from the PM, we have to do it’ and I said, ok,” he added.

Muhammad Zahid, who was Mohd Isa's special officer for six years since 2011, said while he was at the Felda’s office, Mohd Isa had asked whether Ikhwan Zaidel, a former member of  Gegasan Abadi Properties Sdn Bhd Board of Directors had contacted him.

“Tan Sri Isa asked me whether I got a call from ‘Sarawak”, which I knew referred to Ikhwan and Ibrahim Baki. I replied ‘no’ and Tan Sri Isa said ‘give them a call, send my regards’.

“I understand what Tan Sri meant at that time, it was not just a greeting, actually Tan Sri asked me to contact Ikhwan for political funds.

“I then contacted Ikhwan to convey Tan Sri's regards. Ikhwan said ‘Oh...it's ok...we’ll see you later’,” Muhammad Zahid said.

Mohd Isa, 71, is facing one count of criminal breach of trust (CBT) and nine counts of receiving bribes involving more than RM3 million in connection with the purchase of MPHS by FICSB.

The offences were allegedly committed at the Felda Tower, Platinum Park, No. 11, Persiaran KLCC here, between April 29, 2014 and Dec 11, 2015.

The trial before Judge Mohd Nazlan Mohd Ghazali continues tomorrow (Tuesday, Jan 14).

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