KUALA LUMPUR, April 24 — The Zulqarnain & Co law firm received a RM2.5 million cheque for an unspecified defence contract in 2015 from Datuk Seri Najib Razak, the High Court heard today.

Lawyer Ashraf Abdul Razak, who was had been a partner at the firm from 1996 to 2017, said the cheque dated February 2, 2015, was given to him by Habibul Rahman Kadir Shah, a known corporate figure.

Habibul was appointed to various GLCs during Najib's administration, including as non-executive director of Malaysia Airlines Bhd.

Ashraf is the 18th prosecution witness in Najib’s money-laundering and criminal breach of trust trial over RM42 million of funds from SRC International Sdn Bhd, a former 1Malaysia Development Berhad (1MDB) unit.

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Ashraf testified that he was actively involved with Habibul at the time as the latter’s company, Fuelsubs House Sdn Bhd, wanted to tender for a job to manage fuel subsidy.

“Habibul informed that there is payment, and he requested me to receive the payment for the defence contract as part of the payment from him to me moving forward. There is a small acknowledgement note between him (Habibul) and me on the payment through the cheque that was signed by him,” he said, noting that Habibul was a client of 12 years.

Asked what happened with the cheque, Ashraf said he deposited it the following working day.

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“When I work with Habibul, he wanted this matter to proceed smoothly and quickly. Then I waited for Habibul to give further instruction on the payment.

“This cheque also includes my lawyer’s fee, which is why I deposited it into the firm’s account,” he told deputy public prosecutor Muhammad Saifuddin Hashim Musaimi when examined.

Muhammad Saifuddin: How much was the legal fee?

Ashraf: RM50,000, sir.

A: Habibul then instructed me to issue cheques to among others, his wife and his kids. And in stages after that, he told me to issue cheques to parties he determined, as well as cash cheques.

MS: Do you know why he did not issue the cheque into his own account and told you to manage this (fund)?

A: Sorry I do not know.

MS: You managed the whole RM2.5 million?

A: Yes sir.

Ashraf then admitted that to quicken the overall payment process, some of the money was transferred into his personal account before being distributed via telegraphic transfer to the accounts of Habibul and his aide, known only as Azmi.

When cross-examined by Najib’s lawyer, Tan Sri Muhammad Shafee Abdullah, Ashraf said he never asked where the money came from.

“Because I have known Habibul for a long time and because of his position as a corporate leader, I never asked where the money came from,” he said.

Ashraf said he had received funds from Habibul about 10 times between 2013 and 2015, but the amounts were much less than the cheque his former firm had received from Najib.

Later, the 19th prosecution witness, CIMB Bank Cheque Clearing Operations Department deputy general manager Edward Innasi, 58, confirmed that a cheque amounting to RM2.5 million was deposited into the bank account belonging to the firm on February 2, 2015.

Ashraf's former firm is among 15 recipients of cheques totalling over RM10.77 million issued under two AmIslamic Bank accounts that were registered under Najib’s name, based on court documents produced in court previously.