What was the nature of the RM10 million transaction between Yayasan Akalbudi and Armada Holdings?

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The RM10 Million Transaction Between Yayasan Akalbudi and Armada Holdings Was Characterised as an Investment

Datuk Seri Khalid Mohamad Jiwa testified that the RM10 million provided by Yayasan Akalbudi to Armada Holdings Sdn Bhd in 2015 was intended as an investment, not a loan. This capital was provided to Armada Holdings, a company owned by his friend and business partner Datuk Wasi Khan @ Wasiyu Zama Israr, to secure start-up funds for a bid to supply coal from Indonesia to TNB Fuel Services Sdn Bhd. Khalid emphasised that the funds were returned to Yayasan Akalbudi after Armada Holdings failed in its tender bid, ensuring the foundation did not incur losses.
Investment Aimed at Securing a Coal Supply Contract

The RM10 million from Yayasan Akalbudi was channelled to Armada Holdings specifically to provide the necessary start-up capital for the company to pursue a contract. This contract involved supplying coal sourced from Indonesia to TNB Fuel Services Sdn Bhd, a subsidiary of Tenaga Nasional Berhad. Khalid explained that they had initially requested Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi to reduce the paid-up capital requirement for the bid from RM10 million to RM5 million. However, Zahid opted to provide the full RM10 million as an investment.
Return of Funds Due to Failed Tender Bid

Armada Holdings returned the entire RM10 million sum to Yayasan Akalbudi after approximately two months. This repayment occurred because the company was unsuccessful in its bid for the TNB coal supply tender. Khalid applied to become a signatory for Armada Holdings' cheques to ensure the secure return of the RM10 million investment and any associated interest, safeguarding Yayasan Akalbudi from any financial detriment.
Disagreement Over "Interest" Payment

Khalid disagreed with the prosecution's assertion that an additional payment of over RM69,000 made by Armada Holdings represented interest on a loan. He contended that this sum was to cover the "opportunity loss" that Yayasan Akalbudi would have experienced by not placing the RM10 million in fixed deposits and instead investing it in Armada Holdings. He maintained that the RM10 million should be viewed as an investment, with the potential for Yayasan Akalbudi or its nominee to become a shareholder if the tender had been successful.

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What was the nature of the RM10 million transaction between Yayasan Akalbudi and Armada Holdings?

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