What was the business proposal for the RM10 million?

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The RM10 Million Transaction: Loan or Investment?

Datuk Wasi Khan, a businessman, testified in court that the RM10 million provided by former deputy prime minister Datuk Seri Ahmad Zahid Hamidi in 2015 was a loan to his company, Armada Holdings Sdn Bhd. Wasi Khan acknowledged, however, that the funds could also be interpreted as an investment, describing the offer as "too good to be true." The cheque, dated November 16, 2015, originated from the charitable organisation Yayasan Akalbudi.
Business Proposal for Coal Supply Tender

Wasi Khan explained that he met with Datuk Seri Ahmad Zahid Hamidi around October 15, 2015, through an introduction by Datuk Seri Khalid Mohamad Jiwa. During this meeting, Wasi Khan outlined his company's need for RM10 million, which was the minimum capital requirement to bid for a tender. This tender involved supplying coal to a company associated with the energy producer Tenaga Nasional Berhad (TNB). Wasi Khan stated that he did not explicitly request an "investment" during this initial discussion, but rather explained his financial difficulty in meeting the tender's capital prerequisite.
Trust and Business Proposal as Basis for Funding

Wasi Khan confirmed that the RM10 million was handed over by Zahid based on trust in Datuk Seri Khalid Mohamad Jiwa and in Wasi Khan's "business proposal." There were no written documents detailing the terms of this financial aid. Wasi Khan agreed that Zahid had no prior knowledge of him or vested interest in Armada Holdings before the meeting. The funds were utilised by Armada Holdings to establish a bank account for the first time.
Repayment and Profit for Yayasan Akalbudi

In February 2016, Wasi Khan returned the full RM10 million to Yayasan Akalbudi. Additionally, he provided RM69,722.65, which represented interest earned from fixed deposits of the funds. Wasi Khan stated that he offered this additional sum from his own initiative, without being directed by Zahid to do so. He agreed that this repayment, including the accrued interest, constituted a profit for Yayasan Akalbudi, and the foundation did not incur any losses from the transaction.
Subjectivity of Loan and Investment Terms

Wasi Khan conceded that the terms "loan" and "investment" can be subjective and that a loan could, in essence, be considered a form of investment. He also agreed with the assertion that Zahid had, in separate discussions with Datuk Seri Khalid Mohamad Jiwa, agreed for Yayasan Akalbudi to invest in Armada Holdings' planned coal business. However, Wasi Khan expressed a lack of knowledge regarding any specific profit-sharing arrangements purportedly agreed upon by Zahid and Khalid. The memorandum of association of Yayasan Akalbudi does permit the foundation to "invest in Malaysia the money of the foundation not immediately required."

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What was the business proposal for the RM10 million?

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