KUALA LUMPUR (Dec 2): Former prime minister Datuk Seri Najib Razak claims that investigators probing the 1Malaysia Development Bhd (1MDB) scandal did not clearly articulate funds in his personal accounts that were linked to his abuse of power charges.

Najib, who is testifying in his defence in the 1MDB-Tanore trial, alluded to this alleged oversight by the authorities in their investigations against him.

Najib is currently reading from his 525-page defence statement. Referring to the first charge, where he is accused of abusing his power to gratify himself with RM60,629,839.43, Najib said:

"[...] The exact amount of RM 60,629,839.43 was not specifically enquired from me, nor was I told that the amount relates to the first charge, or how it even correlates to the government guarantee given to Terengganu Investment Authority (TIA) for the RM5 billion Islamic Medium Term Notes (IMTN), the federalisation of TIA, the joint venture between 1MDB and PetroSaudi, and the investment of the additional RM1 billion under the Murabaha Financing Agreement".

For the first abuse of power charge, Najib is alleged to have obtained the Cabinet’s consent in April 2009 over a government guarantee for TIA to get domestic and foreign market loans up to RM5 billion, by way of the IMTN.

TIA is 1MDB’s predecessor. The money raised was eventually used by 1MDB for its joint venture with PetroSaudi International Ltd (PSI).
 
Under the JV, 1MDB undertook an equity investment of US$1 billion, while PetroSaudi International Ltd (PSI) injected US$1.5 billion worth of assets into the JV. However, US$700 million from the US$1 billion went to Good Star Ltd, on grounds that the company was a PSI affiliate. The company was actually associated with fugitive businessman Low Taek Jho (Jho Low).

During submissions at the end of the prosecution’s case, Najib’s counsel Tan Sri Muhammad Shafee Abdullah had argued that investigations which led to Najib’s charges in the trial were "shoddy" and "incomplete".

On Monday, Najib also said that in relation to the issuance of the IMTN bond, he was merely following through with an earlier Cabinet decision made during his predecessor Tun Abdullah Ahmad Badawi’s time.

"This presentation was made due to an earlier Cabinet decision under [Badawi], who had consented to then Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin’s wish for the provision of a government guarantee to TIA’s bond issuance. It was a follow up by my Cabinet of [Badawi]'s Cabinet decision," he said.

It has to be noted that Najib was also part of Badawi’s Cabinet.

Najib also testified that he referred to some remittance slips for the first time while his statement was recorded, and he was "not told how those remittances relate to any of the alleged abuses of positions purportedly committed" by him.

"During the investigation, I just read aloud the details as they appear on the documents, and no further clarification was sought from me by the recording officer. The investigative process did not at any time highlight to me or interrogate me of the amount in relation to the RM60,629,839.43," Najib said.

He added that he had briefed the Malaysian Anti-Corruption Commission (MACC) officers, as he "believed" that the monies were from Prince Faisal bin Turki bin Bandar Al-Saud, who was channelling donations from the Middle East.

Although the transaction came from an account with Riyad Bank, Saudi Arabia, prosecution witness Bank Negara Malaysia (BNM) analyst Adam Ariff Mohd Roslan had testified that the monies could be traced back to 1MDB.

In this trial, Najib is accused of four abuses of power and 21 money-laundering charges.

Read also:
1MDB-Tanore: Najib says still left speculating on what his personal interest is in abuse of power charge
1MDB-Tanore: Najib maintains belief that funds were donations
1MDB-Tanore: Najib says he's not first PM to hold finance minister post, and not the last, citing his late father and Anwar
1MDB-Tanore: Najib takes stand in his defence
Defence: 1MDB-Tanore investigation against Najib shoddy and incomplete