Felcra board of directors aware of investment risk, court told in Bung’s graft case

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KUALA LUMPUR: Felcra's board of directors was aware that the decision to invest RM150mil in Public Mutual Berhad's unit trusts was risky, the Sessions Court was told.

Former Felcra Bhd group chief financial officer Mohd Azmy Abu Samah, 54, however, said he requested the board of directors to consider the investment proposal when presenting it in a board meeting.

The 26th prosecution witness said during the presentation session, he informed the board that Felcra had RM300mil of cash to invest and asked the board to consider it. However, Mohd Azmy said there was no objection or discussion from the board of directors regarding the investment.The witness also agreed with Kumaraendran’s suggestion that the RM150mil investment was made by Felcra on May 18, 2015.

In the previous proceedings, Mohd Azmy told the court that the Ministry of Finance agreed to approve the RM150mil investment after three investment proposal papers were submitted by Bung Moktar.On May 3, 2019, Bung Moktar, 64, pleaded not guilty to two charges of receiving bribes amounting to RM2.2mil and RM262,500 as an inducement to obtain the approval of Felcra to make a RM150mil investment in Public Mutual unit trusts.

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Understanding the investment risk and knowing the investment are two different representation, Right ?

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