KUALA LUMPUR (June 20): Having met resistance from management of 1Malaysia Development Bhd (1MDB) to change its constitution, then Minister of Finance Inc (MoF Inc) secretary Datuk Siti Zauyah Mohd Desa testified that when she went to former second finance minister Datuk Seri Ahmad Husni Hanadzlah and former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah, Irwan told her not to do anything while Husni said he did not want to get involved.

Testifying at the 1MDB-Tanore trial, the prosecution's 26th witness, Siti Zauyah, was subject to cross-examination from former prime minister Datuk Seri Najib Razak's lawyer Tan Sri Muhammad Shafee Abdullah who questioned her about the company's Memorandum and Articles of Association (M&A), specifically Article 117.

Article 117 gave the then prime minister power for any appointment and removal of directors and the senior management. It also stated that the premier had power over any financial commitment (including investment) which was likely to affect government guarantees.

In her witness statement last week, Siti Zauyah stated that she was unsure how this article was included in the M&A as the preparation of the M&A was made in advance by the company secretary of 1MDB before being transferred to MoF Inc from 1MDB's predecessor, Terengganu Investment Authority (TIA), in 2009.

Siti Zauyah said that in her effort to change the M&A she went to Irwan and Husni.

Siti Zauyah: I discussed it with Irwan and he told me not to do anything.

Shafee then asked her if she noted this down in a report, to which she replied: "It was just a discussion."

Shafee: You can't remember writing a report?

Siti Zauyah: I can't remember.

The witness said that her objection to the M&A was due to it being different from all other companies under the MoF Inc. She testified last week that Article 117 was not present in any other M&A of companies under MoF Inc and only applied to 1MDB.

Shafee then moved on to Husni and asked her what Husni did when she went to him.

She said that Husni told her he did not want to get involved with 1MDB matters.

Shafee: Husni did not want to get involved. How did you know this? Did he tell you this?

Siti Zauyah: Yes.

Shafee: He told you 'I don't want to get involved with 1MDB'?

Siti Zauyah: Yes.

Shafee: And when [did he tell you] this? When 1MDB first came under MoF Inc?

Siti Zauyah said that she was not sure but later agreed that it was most likely when 1MDB first came under MoF Inc.

Shafee then showed that Husni had signed special rights and removable shares for the M&A amendments in TIA "pasted" to 1MDB's M&A.

Shafee subsequently showed her special rights redeemable preference shareholders resolutions from TIA which approved the changes in the M&A, which also included Articles 68 and 93.

Shafee also showed her that Husni signed the special rights redeemable preference shares in TIA on Aug 11, 2009. To this, she said she did not know that Husni had signed this.

Shafee: Husni Hanadzlah signed it, immediately after Bakke Salleh and Christopher Lee.

Siti Zauyah: I don't know about this.

Shafee: I am showing you, this is produced by the prosecution, who signed this?

Siti Zauyah: Husni.

Shafee: You said Husni did not want to get involved. Are you sure about your facts because he approved this?

Siti Zauyah: My division did not receive this document.

Shafee: Are you surprised that he signed this?

Siti Zauyah: I have not seen this.

Shafee: I know you have not seen this. I will ask Husni as well but are you surprised?

Siti Zauyah: No comment.

Shafee: I have to put it to you that by this document he was referred to amendments to Articles 68, 93 and 117. He was referred to it. It looks like it, isn't it?

Siti Zauyah: Yes.

Shafee also pointed out to her portions of TIA's M&A that were similar to 1MDB's and said that it could not have been Najib that had made this amendments because they were already done in TIA and approved by Husni, and that these provisions were "copy and pasted" to the 1MDB M&A.

Shafee: It was not the creation of Najib. It was [already] there.

Siti Zauyah: I don't know. I'm telling you that I'm seeing it for the first time.

Shafee: The investigators didn't show you this... then why were you confident and talked about it in your witness statement? You raised it. I did not raise it and because you have, I have to ask you about it.

Shafee: Historically, TIA has gotten these provisions which were taken on board when it was federalised. It was just copied and pasted.

Siti Zauyah: No comment.

Testifying before Justice Datuk Collin Lawrence Sequerah in Najib's trial over the misappropriation of more than RM2 billion of 1MDB funds, Siti Zauyah was referred to Artricle 6 of the M&A which stated that MoF Inc was to have 25% representation on the 1MDB board because the government had guaranteed the RM5 billion Islamic Medium Term Notes for TIA.

Shafee: Why didn't MoF Inc attend [1MDB] board meetings?

Siti Zauyah: I don't know.

Shafee: Do you expect my client to know?

Siti Zauyah: I don't know.

Shafee: You are the officer in charge. You don't know. You think the minister (Najib) would know?

Siti Zauyah: I don't know.

She also added that she did not receive Article 6 of the M&A and did not have knowledge of it.

Previously, when Husni was on the witness stand in the trial, he testified to signing the document on Aug 11, 2009.

However, he said that he did not know of the M&A and the ins and outs of the M&A as he was not involved in its preparation.

The trial continues in the afternoon.

The Edge is covering the trial live here.

Users of The Edge Markets app may tap here to access the live report.