By Justin Cheng, and Timothy Achariam | The Edge Malaysia
A Sutracom Sdn Bhd director told the High Court on Tuesday that he had transferred RM13.77 million to his brother’s company, Mamfor Sdn Bhd, as an inter-company friendly loan to settle old family debts, only to later discover that his brother had channelled a portion of it to Parti Pribumi Bersatu Malaysia (Bersatu/PPBM) without his knowledge.
Shahrin Shamsuddin, the managing director and CEO of Sutracom and the 15th prosecution witness in Tan Sri Muhyiddin Yassin’s criminal trial, testified that the RM13.77 million transferred to his brother Shahradzi Shamsuddin’s company, Mamfor, was funded by security deposits from their project subcontractors.
Sutracom had been awarded a RM605.2 million project to construct and upgrade Phase 3 of the Pulau Indah Ring Road in Klang under the government’s Jana Wibawa programme.
During cross-examination by Muhyiddin’s defence counsel Datuk K. Kumaraendran, Shahrin clarified that he had not been aware of the political donation until a family discussion was convened after the Malaysian Anti-Corruption Commission (MACC) began investigating Sutracom.
Kumaraendran: Who told you some of the money was moved to PPBM?
Shahrin: My brother, Shahradzi, mentioned it during a family discussion after the investigations began.
Kumaraendran: Did you ever give permission for the security deposit funds to be donated to PPBM?
Shahrin: No.
Shahrin added that he did not know the exact breakdown of how the money was split between paying off old debts and the political donation because he had trusted Shahradzi completely to manage their creditors, suppliers and subcontractors during the Covid-19 pandemic.
Brokering the ‘security deposit’ deal and LOIs
The court heard that sending Letters of Intent (LOIs) directly to the Prime Minister’s Office or relevant ministries was a common practice in the construction industry when new projects were announced.
Shahrin testified that while he directed Sutracom, his brother Shahradzi handled the marketing for their family companies, which also included Majulia Sdn Bhd. Shahradzi prepared the LOI draft for the Pulau Indah project using Sutracom’s letterhead and signed on behalf of the company for convenience because they were issuing many applications at the time.
After Sutracom advanced past the pre-qualification (Pre-Q) stage, Shahrin approached Vizione Group to act as the main subcontractor, offering them 60% of the project scope for RM383 million. Shahrin explained that they needed a highly skilled partner because the coastal terrain of Pulau Indah required specialised geotechnical and superstructure engineering for bridges.
As part of the deal, Shahrin negotiated a RM30 million security deposit from Vizione. While marketed to Vizione as a “commitment fee”, Shahrin admitted the deposit was used to keep their family businesses afloat.
“I wish to state that my purpose in setting the security deposit condition was due to our company’s financial needs to settle old debts and operational costs of my family’s companies,” Shahrin said, adding that he kept Vizione in the dark to protect Sutracom’s credibility.
Over RM13m moved to Mamfor as friendly loan
The court heard that between Sept 13, 2021, and Nov 14, 2022, Sutracom received RM14.5 million in security deposits from Vizione Group and its subsequent replacement subcontractor, Pembinaan Teguh Maju Sdn Bhd (PTMSB).
Because the Works Ministry had not disbursed any government funds or progress payments at that stage, Shahrin used Vizione’s security deposits to fund the RM13.77 million transferred to Mamfor across nine transactions. He told the court these transfers were treated internally as an “inter-company friendly loan”.
Shahrin confirmed that the Pulau Indah Phase 3 project is currently 83% complete, within the contract timeline, and on track for its expected completion in January 2027.
He explained that the RM605.2 million project value was professionally calculated by five appointed consultants who helped design the Bill of Quantities according to the Public Works Department (PWD)’s specifications.
Muhyiddin holds no personal or financial interest, says witness
During further cross-examination by defence counsel Datuk Amer Hamzah Arshad, Shahrin reaffirmed that Muhyiddin held no personal or financial stakes in any of his family’s companies or the ongoing project.
Amer Hamzah: Can you confirm that Tan Sri Muhyiddin Yassin does not have a personal or financial interest in Majulia, Sutracom and Mamfor? Agree?
Shahrin: Agree.
Amer Hamzah: Would I be correct to also confirm that throughout the project evaluation process for Pulau Indah Phase 3, you have never received any call from Tan Sri Muhyiddin Yassin? Agree?
Shahrin: Agree.
Amer Hamzah: Or any officers from PMO?
Shahrin: Agree.
Amer Hamzah: They have never asked you what is the application progress application?
Shahrin: Never.
Amer Hamzah: So, in that sense, Tan Sri Muhyiddin has completely nothing to do with your company, even in this project Indah. Agree?
Shahrin: Agree.
Shahrin also agreed with the defence counsel that neither Muhyiddin nor the PMO’s office ever contacted him regarding the 40 to 50 interim payments submitted to the PWD.
Addressing the security deposit practice itself, Shahrin agreed with Amer Hamzah that it is a common industry method to ensure sub-contractors do not abandon a project. He further agreed that the funds received from Vizione were not unlawful proceeds.
When asked by High Court judge Noor Ruwena Md Nurdin whether the donation to Bersatu was recorded officially, Shahrin said he was unsure of Mamfor’s internal accounts and did not know the specific transaction methods his brother used.
When questioned by the judge regarding his stance on political donations, Shahrin stated that he has never personally made any political donations as he does not belong to any political party. He explained his personal principle that politics is constantly changing, with party policies and individual candidates’ credibility shifting over time.
Consequently, he preferred to assess candidates and party directions on a case-by-case basis, and thus his only donation is in the form of his vote, which he casts if a candidate and their party perform and exhibit high quality.
In this trial, Muhyiddin, whose full name is Mahiaddin Md Yasin, 79, is facing seven charges — four counts of abuse of power involving RM225.3 million in alleged gratification and three counts of money laundering involving RM200 million. He is accused of receiving bribes from businessman Datuk Azman Yusoff, 51, and three companies — including Nepturis Sdn Bhd and Mamfor Sdn Bhd — allegedly for the benefit of his political party, Bersatu.
The trial before judge Noor Ruwena Md Nurdin continues.
Edited by Aniza Damis
