KUALA LUMPUR (March 14): 1Malaysia Development Bhd (1MDB)'s former chief financial officer (CFO) Azmi Tahir said fugitive financier Low Taek Jho's extravagant lifestyle was his personal life and was separate from company matters.
Azmi, the 12th prosecution witness in the 1MDB-Tanore trial, told the court this on Monday (March 14) during a heated exchange with Datuk Seri Najib Razak's lawyer Tan Sri Muhammad Shafee Abdullah, who asked if Azmi and members of the 1MDB board and management were "perturbed" over media reports highlighting Low's extravagant purchases and parties.
"It's his personal [life]... we have politicians here whose personal lives are also questionable," said Azmi, adding he was unaware of the extent of Low's personal wealth.
Shafee then pointed out that Low's lifestyle might not have raised suspicion if the company was running well, but that it should have raised concerns when the company was "going broke".
Azmi replied that if the transactions the company had made were fraudulent, then it would have been a concern. However, as Low's lifestyle was a separate matter, it was not a concern.
During the exchange before Justice Datuk Collin Lawrence Sequerah, Shafee suggested that Azmi should have been aware and concerned about Low’s lifestyle and spending.
Shafee: In the context of 1MDB going down, weren't you concerned that the man whom you thought was "the shadow director" was having this lifestyle?
Azmi: [Those are] two different things. [I can be] concerned about the company going down but his lifestyle does not necessarily relate to the company.
Shafee: Yes, his personal life is his issue, but 1MDB is going broke. If 1MDB is running well, then it’s ok. If he wants to drink champagne and womanise, that’s okay. But the company is bleeding money, you didn’t question his private life?
Azmi: I don’t understand the links you made. I am only concerned with his fraudulent transactions in 1MDB.
Shafee: Weren't you concerned [that] the man who was running behind the scenes was having this lavish lifestyle?
Azmi: It is two different things. His lifestyle doesn’t relate to the company.
Shafee highlighted several news articles that reported the extravagant parties and even played a video clip in court of Low — also known as Jho Low — partying in St Tropez in 2010 with Hilton Hotel heiress and socialite, Paris Hilton.
The lawyer asked Azmi if he was aware of Low's penchant for a luxurious lifestyle even in 2010.
To this, Azmi answered that he didn't know Low then, and that when he started to work in 1MDB in June 2012, he "didn't really know" Low.
Shafee then suggested that a more prudent management would have been more suspicious of the money going out of 1MDB at the time.
Azmi replied he only realised something was wrong when the Department of Justice (DoJ) launched its investigation into the goings on at 1MDB.
In 2016, the DoJ filed a forfeiture suit to recover more than US$1 billion in assets against Low and others for the alleged misappropriation of 1MDB funds.
Three years later, the DoJ and Low reached a settlement to recover more than US$700 million of 1MDB funds. The DoJ added that this settlement does not "release" individuals or entities from "filed or potential criminal charges".
Earlier in the morning when questioned by Najib's other counsel Tania Scivetti, Azmi maintained that he was not a co-conspirator to the misappropriation of funds from 1MDB as he was merely following instructions of "those who worked in silos".
Scivetti had put it to Azmi that Falcon bank was "strategically" selected to ensure "misappropriation of US$790 million was carried out smoothly".
To this, Azmi said the selection of the bank was not his decision. "If you are saying that I signed and strategically placed it for misappropriation, I disagree," he said.
Scivetti said it would have been a potential conflict as the then chairman of Falcon Bank was Mohammed Ahmed Badawy al-Husseiny, who was also the CEO of Aabar Investment PJS Ltd.
Azmi then reiterated that the choice of bank was not his decision but that he merely executed instructions given to him.
1MDB Energy Langat Ltd's account in Falcon Bank (Hong Kong) was used to transfer US$790 million to Aabar Investment PJS Ltd's BSI Bank Lugano account. The payment was made following the issuance of US$1.75 billion worth of 1MDB bonds in 2012 to finance the acquisition of Genting Sanyen Power Sdn Bhd.
Scivetti also highlighted that Azmi signed off for this remittance to Aabar Investment PJS Ltd, or the fake Aabar, which is not the real subsidiary of International Petroleum International Co. The real subsidiary, Aabar Investments PJS, does not have the "Ltd" to its name.
To this, Azmi said he executed the decision and did not question it because it was not entirely his decision but rather of those "who worked in silo".
In his witness statement, Azmi said his deputy Terence Geh Choh Heng had managed all international transactions, including this deal.
Justice Sequerah is presiding over the trial, in which former prime minister Najib is facing four counts of abuse of power and enriching himself with RM2.3 billion from 1MDB, and 21 counts of money laundering of the same amount.
Najib faces up to 20 years' imprisonment if convicted.
The Edge is covering the trial live here.
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