1MDB-Tanore: TIA was the brainchild of Sultan Mizan, Jho Low and Tun Badawi

Sunday 19 Jan 2025

KUALA LUMPUR (Dec 2): Former prime minister Datuk Seri Najib Razak said that the inception of 1Malaysia Development Berhad’s (1MDB) former iteration, the Terengganu Investment Authority (TIA), was the brainchild of former Yang Di-Pertuan Agong Sultan Mizan Zainal Abidin and fugitive businessman Low Taek Jho (Jho Low), and that the idea was brought to Cabinet in 2008 when Najib was deputy prime minister under Tun Abdullah Ahmad Badawi’s prime ministership.

Najib, testifying in his own defence at the 1MDB-Tanore trial, said that then prime minister Abdullah had brought the proposal to Cabinet and expressed his alignment with the proposal from Sultan Mizan.

Najib, when asked by his lawyer Tan Sri Muhammad Shafee Abdullah about his involvement in TIA, said: “No, I did not [have any involvement]. TIA was the brainchild of the then YDPA Tuanku Mizan and Jho Low.

“I had nothing to do with the establishment of TIA, nor with the appointment of its directors and executives, as this was entirely under the purview of His Majesty Tuanku Mizan,” Najib said.

He then went on to explain that as deputy prime minister, he was merely fulfilling his responsibility of seeing through Sultan Mizan and Badawi’s vision for TIA in 2008.

“Tun Abdullah expressed his alignment with His Majesty’s vision and requested for the Terengganu state government to submit a detailed proposal on TIA's establishment to the Ministry of Finance,” Najib said.

“As deputy prime minister and minister of finance at that time, I was merely fulfilling my responsibility in seeing through His Majesty’s vision, and more importantly, the prime minister’s directive. I participated in the discussions and conveyed to the Cabinet that the Terengganu state government should indeed submit a detailed proposal on TIA to the Ministry of Finance,” he said.

He also said at that time, the Cabinet collectively agreed to this course of action to “honour the vision laid out by both His Majesty the [then] Yang di-Pertuan Agong, and supported by the prime minister, Tun Abdullah Badawi,” Najib said.

He had explained that TIA was raising capital of RM10 billion in 2008.

“This capital was to be raised through the issuance of bonds in both domestic and international markets, with the federal government providing a guarantee of RM5 billion, backed by a portion of Terengganu’s future oil revenues.

“His Majesty’s primary objective for TIA was to foster long-term prosperity and sustainable economic development in Terengganu, serving as a financial safeguard for the State’s future upon depletion of its oil and gas reserves,” Najib said.

He explained that in 2009 – before he became the prime minister on April 3 that year — and 110 days after the Cabinet’s agreement to the establishment of TIA proposed by Badawi — the Cabinet had consented to the provision of a federal government guarantee to TIA.

Najib admitted to tabling the TIA memorandum in 2009 to the Cabinet, for the provision of a government guarantee when he was deputy prime minister, but said that “I was merely doing my official duty,” and added that he did not have any vested interest in the company.

Later in 2009, Sultan Mizan did not want to continue with the RM5 billion IMTN bond, as he grew dissatisfied with the running of the fund. TIA was then federalised and became 1MDB.

Najib is currently facing 25 counts of money laundering and abuse of power for alleged misappropriation of money in 1MDB.

He is on trial for four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of 1MDB's funds.

Edited ByAniza Damis

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