KUALA LUMPUR (Dec 2): Datuk Seri Najib Razak told the court on Monday that he was "left speculating" on what specific personal interest was related to the first abuse of power charge he faces in the 1Malaysia Development Bhd-Tanore (1MDB-Tanore) trial.

Testifying in his defence, the former prime minister said that almost seven years into the case, he was still "left speculating" on what specific personal interest he had in the matter — as mentioned in the first abuse of power charge — an interest Najib said would have been declared to the Cabinet (if there had been a conflict of interest).

For the specific charge, Najib was alleged to have obtained the Cabinet's consent in April 2009 over a government guarantee for Terengganu Investment Authority (TIA) to get domestic and foreign market loans of up to RM5 billion by way of Islamic medium-term notes (IMTN).

"When the memorandum was presented [to the Cabinet], I held no personal interest that conflicted with my official duties, which would have warranted a declaration.

"In fact, during the investigation, I was never informed of any particular interest I was required to disclose, and it was only during this trial that I became aware that there was supposedly an interest to declare. Even now, it feels like I am being asked to speculate on what that interest might be," he said of his confusion.

Najib testified that he did not hold any interest in TIA, nor did he have any interest in Menteri Besar Terengganu Incorporated (MBTI), which controlled TIA before its federalisation.

He added that he also had no interest in Goldman Sachs, the international investment bank which was the adviser for TIA's IMTN bond issuance.

Furthermore, he added that he had no interest in the IMTN.

"I have not subscribed to a single unit/notes issued under the programme," he said.

He went on to testify that he also had no interest or family members with AmBank, the lead arranger for the IMTN.

"So, no, I do not, and did not, have any interest to declare to the Cabinet at all. I do not know what kind of interest the prosecution had in mind, which they assert must be declared to the Cabinet. It seems like it is the prosecution that has failed to declare what is it that I would have to declare to the Cabinet in this trial," he said.

On the stand on Monday, Najib maintained that he was not actively involved in the inception of 1MDB's predecessor, TIA. He also added that he was merely following through with an earlier Cabinet decision under his predecessor, former prime minister Tun Abdullah Ahmad Badawi.

"Yes, I recall the allegation, though it’s entirely baseless. As of April 1, 2009, there had been no discussions between MBTI and MOF Inc (Minister of Finance Inc) regarding any shareholding in TIA by MOF Inc. Nor had there been any conversations between MBTI and the federal government about a federal takeover of TIA. In reality, such discussions only commenced in June 2009, and that was purely due to the internal breakdown and infighting at TIA.

"MBTI and TIA's management were unable to resolve their differences, prompting then Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin to seek federal intervention.

"Tuanku Mizan was, in fact, quite pleased when the federal government agreed to take over TIA. (Then deputy prime minister) Tan Sri Muhyiddin (Yassin) confirmed this to the Cabinet during a special address on July 15, 2009, at which I was not present," Najib said.

It has to be noted that former TIA and 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi had testified that Najib had ordered TIA to push on with the bonds issuance, despite opposition from Terengganu’s ruler.

On the stand on Monday, Najib testified that TIA was federalised to prevent it from defaulting from the RM5 billion federally-backed bonds.

"It was the federal government's duty, driven purely by necessity. Also, His Majesty Tuanku Mizan requested for the TIA to be taken over by the federal government and was elated when the Cabinet agreed to do so," he said.

Najib stressed that he was not keen on the federalisation.

"I, as the [then] deputy prime minister, was not keen for the federal government to take over TIA [...]," he said, adding that this was documented in the Cabinet meeting’s minutes.

The trial before presiding judge Datuk Collin Lawrence Sequerah continues on Tuesday.

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