KUALA LUMPUR (Jan 5): Former 1Malaysia Development Bhd (1MDB) chief financial officer (CFO) Azmi Tahir (pictured) has strongly refuted Datuk Seri Najib Razak’s counsel’s claim that his appointment as CFO was part of a conspiracy to misappropriate 1MDB funds.
Cross-examining Azmi during Najib’s 1MDB-Tanore trial at the High Court, counsel Datuk Hariharan Tara Singh asked the ex-CFO whether his appointment was orchestrated by fugitive businessman Low Taek Jho (Jho Low) and former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi.
The former prime minister’s lawyer went on to allege that Azmi was purposefully selected as CFO to aid in a conspiracy or “secret action” to transfer US$790 million (RM3.3 billion) of 1MDB funds to a purported subsidiary of the United Arab Emirates’ International Petroleum and Investment Co subsidiary, Aabar Investment PJS Ltd.
The money was allegedly transferred out as a security deposit or inducement for its US$3 billion investment in the TRX development project in Kuala Lumpur as a 50:50 joint venture between 1MDB and Aabar.
However, it has been revealed that Aabar was a fake company set up by Jho Low – Najib’s alleged representative in 1MDB – to siphon 1MDB funds.
Hariharan: I put it to you, [that] you were selected from day one to be placed in the high position (CFO) of 1MDB to carry out this secret action of transferring US$790 million to Aabar without the instruction of the shareholder (Najib).
Azmi: I disagree.
Hariharan: I put it to you that despite not having any approval from the board and the shareholder you had transferred US$790 million to Aabar to the detriment of 1MDB.
Azmi: I disagree.
Hariharan: I also put it to you, [that] without your act as CFO of signing that transfer instruction, the US$790 million would not have been misappropriated from 1MDB.
Azmi: [If I didn’t sign it], I would have been in breach of an agreement.
Hariharan: Without your act of signing, this money would not have moved.
Azmi: True, as a signatory.
Hariharan then produced another document showing Azmi had signed and authorised the transfer of US$175 million to Aabar.
Azmi testified that the signature authorising the transfer of money was indeed his, but added that he could not recall the document although he was generally aware about it.
Hariharan suggested to the witness that Najib had not approved the transfers of money, to which Azmi replied that he could not recall.
Hariharan: I put it to you again, that you were selected specifically to be in this high position as a CFO of 1MDB to carry out the transfer of US$175 million to Aabar without the knowledge of Najib.
Azmi: No, I disagree.
Hariharan: Again I put it to you, [without] your act of signing, the transfer of US$175 million would not have taken place.
Azmi: Yes, but that was because I was a signatory.
In May and August 2014, 1MDB through its subsidiary 1MDB Energy Holdings Ltd obtained two loans totalling US$1.225 billion from Deutsche Bank Singapore.
Of this sum, 1MDB Energy paid Aabar US$175 million to its account in BSI Lugano, Switzerland.
During the cross-examination on Wednesday (Jan 5), Hariharan claimed several times that Azmi had conspired with Jho Low, Shahrol and others to misappropriate 1MDB funds. But each time, the ex-CFO fervently denied the claim.
Najib is facing 21 counts of money laundering and four charges of abuse of power over alleged misappropriation of billions of ringgit of 1MDB funds.
The trial resumes on Thursday with further cross-examination of Azmi.