KUALA LUMPUR (Jan 8): The Cabinet in 2012 was not aware of 1Malaysia Development Bhd (1MDB) bond issuances of US$3.5 billion for the takeover of two power plants, as it was kept hidden from the Cabinet by Datuk Seri Najib Razak, a Malaysian Anti-Corruption Commission (MACC) investigating officer testified in the High Court on Monday.
At the hearing of the 1MDB-Tanore trial, the MACC officer Nur Aida Arifin said the Ministry of Finance has no knowledge over the two bond issuances of US$1.75 billion each for the takeover of power assets held by Tanjung Energy Holding Sdn Bhd (TEHSB) and Genting Sanyen Sdn Bhd, despite Najib being the finance minister at the time.
1MDB ended up issuing another bond of US$3 billion in 2013, making its total US dollar bond issuance to US$6.5 billion. The former prime minister had in 2015 claimed that US$3 billion bond issued to 1MDB, had the support of the government
At the trial, Nur Aida also said that her investigations demonstrated that 1MDB was managed in a "top down approach" where the 1MDB management goes on with major projects only after Najib's "blessing".
She noted that at the time, Najib had pre-signed two resolutions, which were tabled along with a director circular resolution, for all 1MDB directors to sign.
She also pointed to testimonies from Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail, and two company secretaries in coming to her conclusion.
The 49th prosecution witness in the trial was describing Najib’s actions in the asset takeover by 1MDB, following questions from deputy public prosecutor Ahmad AKram Gharib,
However, her statement was met with objection by Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah amid her allegation of the “top down” approach — which was similarly described by the prosecution, who alleged that Najib gives directives to 1MDB board members for them to abide.
During cross-examination of prior witnesses in the trial by Shafee, the defence lawyer said there were some doubts to the "top down" approach cited, and hence it was unsafe for the court to consider the conclusion.
With this, trial judge Datuk Collin Lawrence Sequerah asked the prosecution and defence to submit on the issue later.
In the witness box, Nur Aida also testified from her investigations of the Aabar episode of the 1MDB scandal that a sum of US$30 million went into Najib’s 9694 AmBank accounts.
This, the witness said, came from an elaborate transfer from Blackstone Asia Real Estate Partners Ltd, that was controlled by Eric Tan Kim Loong, who is an associate of Jho Low.
Investigations into the 1MDB scandal identified three phases of money-laundering activities through the state-owned fund, namely the "Good Star phase" where US$1 billion was allegedly diverted; the "Aabar BVI phase" where US$1.36 billion was said to be misappropriated, and the "Tanore phase" where another US$1.26 billion was also said to be diverted from the company.
The hearing before Justice Sequerah resumes on Jan 24 with Nur Aida continuing her testimony on the Tanore stage.
The Edge is covering the trial live here.
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