KUALA LUMPUR: The High Court was told that Datuk Seri Dr Ahmad Zahid Hamidi had used RM17.9mil of fixed deposit withdrawals from Yayasan Akalbudi (YAB) to finance his daughter’s bid to buy a hotel in Bali, Indonesia.

       Deputy Public Prosecutor Datuk Raja Rozela Raja Toran said the Umno president’s daughter Datuk Nurulhidayah was interested in “running the hotel” and thus YAB’s funds had been used for a different purpose than what it was intended for.

       She was submitting on the point of criminal breach of trust at the end of the prosecution’s case in the graft trial of Ahmad Zahid involving YAB funds here yesterday.

       The prosecutor elaborated on the money trail starting with Ahmad Zahid giving specific instructions to Affin Bank to withdraw all monies from the seven fixed deposit accounts via a letter dated June 23, 2016.

       The same amount of monies was remitted to law firm Messrs Lewis & Co via banker’s cheques on June 28, 2016.

       Two days later on June 30, 2016, the firm had acted upon the instruction from Ahmad Zahid to issue a cheque for RM8.6mil to hotel operator Ri-Yaz Asset Sdn Bhd.

       A partner of the law firm had testified that he was instructed by the accused to make the payment for the purpose of purchasing 60% of shares from the company from Ri-Yaz Asset chairman Tan Sri Rashid Manaf.

       Rashid previously testified before the court that he had met Nurulhidayah to discuss the proposed venture.

       He also told the court he had sought to sell off his shares because the company was facing difficulty in meeting the terms of its repayment for a US$24.8mil Exim Bank loan for the purchase of the Bali hotel.

       The deal, however, did not materialise and the same RM8.6mil was transferred back to Lewis & Co and into fixed deposits in July 2016 and May 2017.

       “Even if we were to accept it was a form of investment by YAB, the question is, how could this money spent on a hotel in Indonesia help the poor in Malaysia?

       “We humbly submit that the accused had dishonestly misappropriated RM17.9mil of the funds from the seven FDs belonging to YAB,” she said.

       DPP Raja Rozela said the purpose of YAB funds was specifically for the eradication of poverty and the enhancement of the welfare of the poor and to conduct studies and research relevant to the poverty eradication programme.

       “In other words, the funds in YAB account were used for the personal enrichment of the accused and for the benefit of a person or persons with whom YAB has no connection or interest in,” she added.

       Ahmad Zahid is facing 47 charges – 12 for criminal breach of trust, eight for corruption and 27 for money laundering – involving millions of ringgit belonging to YAB.

       The hearing before Justice Collin Lawrence Sequerah continues on Monday.