KUALA LUMPUR (April 27): Former prime minister Datuk Seri Najib Razak was never confronted by the Malaysian Anti-Corruption Commission (MACC) on whether Blackstone Asia Real Estate Partners — which received millions from 1Malaysia Development Bhd (1MDB) and transferred it to his private banking account — was controlled or owned by fugitive Eric Tan Kim Loong, an alleged associate of Low Taek Jho or Jho Low.
MACC investigating officer Nur Aida Arifin told the High Court this on Saturday when testifying in the 1MDB-Tanore trial before judge Datuk Collin Lawrence Sequerah.
Nur Aida agreed with Najib's defence counsel Wan Azwan Aiman during cross-examination that she had never asked Najib during her investigation into 1MDB whether he knew the owner of Blackstone was Tan.
She also agreed with Wan Azwan's suggestion that Najib believed back then that Blackstone was owned by the late King of Saudi Arabia, King Abdullah.
Wan Azwan was asking Nur Aida about transactions that took place between Blackstone and Najib's personal AmBank account ending 9694.
Wan Azwan: You agree that while you (the MACC) were recording statements from Najib, he was not shown any documentation that Eric Tan was the beneficial owner of Blackstone?
Nur Aida: I agree.
Wan Azwan: You agree that during your questioning of Najib that he believed Blackstone was owned by the late King Abdullah of Saudi Arabia (who was alive at that time)?
Nur Aida: Yes, I agree.
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 money originated from 1MDB, which took out loans backed by the government for purported investments.
The money from Blackstone that ended up in Najib’s account originated from 1MDB's bond issuance worth US$3.5 billion for the takeover of two power plants. These transactions took place during the Aabar BVI phase.
Nur Aida previously testified that her investigation into the Aabar phase showed that a sum of US$30 million went through an elaborate transfer from Blackstone into Najib’s AmBank account ending 9694.
Najib has always contended that the money that came into his account were from King Abdullah, and that he had no knowledge that the accounts which transferred the money to him were owned and controlled by Jho Low and his associates.
In this trial, Najib is facing four counts of abuse of power for using his position as the then prime minister, finance minister and chairman of 1MDB’s board of advisers to receive gratifications worth RM2.27 billion. He also faces 21 money-laundering charges. The trial continues on Tuesday.
Najib is now in jail after having been found guilty of graft involving RM42 million of funds from SRC International Sdn Bhd, a former subsidiary of 1MDB. He was sentenced to spend 12 years in jail from August 2022, and fined RM210 million. But the Pardons Board in February halved his jail term and reduced the fine to RM50 million.