KUALA LUMPUR (April 20): Penang fugitive businessman Low Taek Jho (Jho Low) might have downplayed the extent of 1Malaysia Development Bhd's (1MDB) debts in an email and attachment to the company's former chief financial officer (CFO), Azmi Tahir, ahead of a scheduled meeting with KPMG PLT over 1MDB's financial statements for the year ending March 2013, which the auditor had problems reconciling.
Cross-examined by Wan Aizuddin Wan Mohammed, lawyer of former prime minister Datuk Seri Najib Razak, Azmi agreed that he received an email from the businessman sometime on Nov 28, 2013.
The 13th prosecution witness said the email, from [email protected], was Jho Low's email and that the accompanying attachment was for the purpose of his discussion with KPMG.
Wan Aizuddin: In the email, Jho Low said 1MDB had government guaranteed debt of RM5.8 billion, whereas 1MDB had more debt, can you confirm this is not true?
Azmi: We have other bonds but I am not sure whether what Jho Low said in the email was limited in scope. But for sure there are other debts, namely with the bonds raised for the Tanjung energy purchase.
Wan Aizuddin: The point is RM5.8 billion [of] government guaranteed debt?
Azmi: If you say it does not tally, yes, as 1MDB has RM30- or RM40-odd billion debt, yes, that figure (RM5.8 billion) does not highlight the amount.
Besides the Islamic Medium Term Notes raised by 1MDB in 2009 for RM5 billion, 1MDB was also involved with Goldman Sachs to raise US$6.5 billion in bonds between 2012 and 2013.
Throughout the cross-examination, Wan Aizuddin attempted to stress that KPMG was not satisfied with the explanation given by 1MDB in relation to the Brazen Sky deal even after a briefing with Najib at his Jalan Duta residence, followed by requests for more documents.
Azmi agreed that generally KPMG did not accept the explanation given.
"It was not enough and not acceptable," he said.
Geh not in briefing with KPMG
Azmi also testified in court that his former deputy CFO, Terence Geh Choh Heng, who despite dealing with 1MDB's foreign funds was not present in the company's briefings with KPMG in November and December 2013.
He agreed with Wan Aizuddin that Geh was placed in charge by Jho Low to oversee funds of 1MDB that were placed overseas.
Wan Aizuddin: You agree Geh was in charge of foreign funds, why was he not present in the meeting with KPMG?
Azmi: I do not know why he was not there [to meet with KPMG, despite being in charged mostly of foreign funds].
Geh was one of a number of 1MDB officers, along with the firm's general counsel Jasmine Loo, who fled the country ahead of the 14th general election in 2018. Putrajaya has since taken forfeiture proceedings against them.
Wan Aizuddin also asked Azmi whether he had joined Jho Low on board Sheikh Mansour's yacht The Topaz, which was headed to Brazil for the World Cup in 2014.
Reports by Sarawak Report alleged that Jho Low was on board the yacht with several 1MDB officers.
Azmi denied he was there or meeting Jho Low in Brazil although he recalled meeting him in Abu Dhabi. "I am not a football fan," he added.
Wan Aizuddin: Jho Low went on board Sheikh Mansour's yacht with some 1MDB officers as alleged by Sarawak Report, were you one of them?
Azmi: I was not one of the officers who travelled [to Brazil]. I do not recall but you (the defence) are welcome to check on it.
Sheikh Mansour Zayed Al Nahyan is the owner of the Manchester City Football Club and chairman of International Petroleum Investment Co (IPIC), which is embroiled in a multibillion-dollar dispute with Malaysia over its transactions with 1MDB.
IPIC stood as guarantor for two of 1MDB's bond deals with Goldman Sachs.
The fraud trial of Najib relating to 1MDB funds before Justice Datuk Collin Lawrence Sequerah continues on Thursday.
The Edge is covering the trial live here.
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