KUALA LUMPUR, May 15 — Ihsan Perdana Sdn Bhd was given RM40 million in annual grants from Yayasan 1MDB (Y1MDB) and Yayasan Rakyat 1Malaysia (YR1M) to conduct Corporate Social Responsibility (CSR) programmes in areas held by Barisan Nasional (BN) or Umno, the High Court heard today. 

Ihsan Perdana’s director Datuk Dr Shamsul Anwar Sulaiman, testifying as the 37th prosecution witness in Datuk Seri Najib Razak’s trial over RM42 million from SRC International Sdn Bhd, also revealed BN lawmakers and Umno division leaders were the ones who decided the beneficiaries of these schemes.

“Y1MDB gave funds of RM20 million a year to Ihsan Perdana to organise CSR in Malay areas won by Umno or BN, while YR1M gave funds amounting to RM20 million a year to Ihsan Perdana to organise CSR programmes in Chinese and Indian areas won by Umno or BN,” he told the High Court today.

He also said that of the RM40 million Ihsan Perdana received annually, some RM5 million would be allocated for their annual operational costs. 

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It was previously revealed in court that a total of RM42 million from Ihsan Perdana made its way into two personal accounts of Najib between December 2014 and February 2015, in three tranches of RM27 million, RM5 million, and RM10 million. 

Today, Dr Shamsul Anwar explained how Ihsan Perdana was a company formed to handle CSR projects and was not profit-oriented, with all its funding coming from the grants given by Y1MDB and YR1M.

Some of the CSR activities organised by Ihsan Perdana, he said, included sending village chiefs and religious leaders for the hajj pilgrimage, repair works on dilapidated homes of the poor, assisting fishermen, and special assistance to Orang Asli settlements. 

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Former prime minister Najib is currently on trial over seven charges including money laundering and criminal breach of trust over the RM42 million belonging to former 1MDB subsidiary SRC International Sdn Bhd. 

Dr Shamsul Anwar revealed during his testimony today how Ihsan Perdana was appointed by SRC International as their CSR partners with the latter company expressing intentions to supply a RM250 million grant to assist the needy.

He said the appointment was due to his relationship with SRC International’s CEO Nik Faisal Ariff Kamil, having previously worked together in 1MDB before the formation of Ihsan Perdana.

However, Dr Shamsul Anwar revealed that despite personally collecting an official appointment letter signed by Nik Faisal, no follow-up actions had come to fruition following the agreement.

“After the letter appointing Ihsan Perdana as SRC International’s CSR partners was signed on September 3, 2014, Ihsan Perdana never received direct instructions from SRC International to carry out CSR programmes.

“Also, Ihsan Perdana did not receive the funds amounting to RM250 million from SRC International as stated in the appointment letter,” he said when reading out his written statement.

Today marks Day 18 of the trial.