KUALA LUMPUR (Dec 4): Former prime minister Datuk Seri Najib Razak has denied ever telling then second finance minister Datuk Seri Ahmad Husni Hanadzlah to “not interfere” in matters of 1Malaysia Development Bhd (1MDB), refuting Husni’s claims that he had advised Najib against a US$1 billion joint venture (JV) with PetroSaudi International (PSI).

Najib, testifying on the stand in his defence during the 1MDB-Tanore trial on Wednesday, said that Husni’s claims are baseless, as there is no documentary evidence of it. Moreover, Najib claimed that Husni could have objected to the JV in Cabinet meetings, but did not do so.

“Datuk Seri Husni’s claim, that I instructed him to ‘not to get involved or interfere with 1MDB’, is completely untrue. At no point did I issue instructions to Husni,” Najib said.

Husni, who had testified in 2022 as a prosecution witness, had said that he had advised Najib against the sham JV with PSI, with which 1MDB ended up haemorrhaging US$700 million to fugitive businessman Low Taek Jho (Jho Low).

The prosecution in this case argued that Najib had the "controlling" power over the company, since it came under Minister of Finance Incorporated (MOF Inc), where the minister was the sole shareholder. This, among others, was evident from Husni's testimony.

Husni claimed he had tried to warn Najib that some of the deals that 1MDB was proposing to do were not the wisest of choices. In mid-2009, around the time when the federal government was looking to take over the Terengganu Investment Authority and turn it into 1MDB, Husni said he had cautioned Najib that 1MDB should not be established without a “feasibility study”. Najib insisted, however, that he would continue with the plan.

At the material time, Najib was also the first finance minister.

Husni claimed to have approached Najib again after he got wind of the proposed JV with PSI. He had testified that 1MDB had no experience in the area of oil and gas, and, if necessary, it made more sense for national oil company Petroliam Nasional Bhd (Petronas) to be roped into the JV instead.

On this occasion, Najib allegedly bluntly told him, “Husni, I don’t want you to get involved and interfere [with] 1MDB.”

Husni reached out to the PM once again via a private letter sent through Najib's then principal private secretary, the late Datuk Azlin Alias, wherein he voiced his concerns that 1MDB’s affairs could court controversy and affect Najib and his government. His letter was met with silence.

However, during the trial on Wednesday before judge Datuk Collin Lawrence Sequerah, Najib testified on the stand that Husni did not object to any Cabinet meetings which discussed 1MDB.

“Secondly, there are three memos which bear Husni’s explicit agreement, with him noting his concurrence ('bersetuju') with their contents,” Najib said, adding that these matters fell within Husni’s responsibilities as the second finance minister.

Najib’s lawyer Tan Sri Muhammad Shafee Abdullah then asked Najib about his relationship with Husni, and whether they had any personal grudges, which led Husni to testify and make allegations against him.

Shafee: In your kindness and trust you placed on him, I view his testimony as angry. Is there any reason why his testimony was angry?

Najib: I believe this is because I wanted to transfer him to another ministry on a rotational basis. He was upset, I believe, because he still wanted to remain as minister of finance II, but I wanted to transfer him to become the economic minister or minister in charge of housing.

Shafee: This is typical, isn’t it? You yourself went through transfers to various ministries when you were a minister?  

Najib: Yes, correct.

Shafee: Can you explain — he came to see you in your office, he came to see you about the transfer?

Najib: Yes, he came to see me with resignation, because I believe he was not happy about being transferred.

Shafee then asked Najib if he could think of any other reason Husni would be unhappy with him, prompting Najib about a privatisation project, which was denied to Husni’s son.

Najib: Not that I can think of. I was always supportive of him. I made him a minister.

Shafee: Anything to do with his son?

Najib: Oh yes. I recall it was a request his son made that did not materialise.

Shafee: It was for a project. What project?

Najib: I can’t remember, it did not materialise. When you are at the apex, you get blamed for everything — even when the system doesn’t allow you to accede to everything. I recall it was the privatisation of some highway project. As I said, you always get blamed for everything.

Najib then said that he was disappointed and had wanted Husni to stay on as a federal minister as well as Umno treasurer.

“I was very disappointed when he resigned,” Najib said.

He said that hearing Husni’s testimony against him was “disheartening”, as he had handpicked Husni for the ministerial role.

“Hearing Datuk Seri Husni's testimony and the allegations he has made against me has been profoundly disheartening. Datuk Seri Husni was someone I personally selected to serve as the second finance minister in April 2009,” Najib said.

“During my tenure as the Umno president, I also appointed him as the treasurer of Umno — a position that further reflected my confidence in his capabilities and integrity.

“These decisions were not made lightly; they were based on the belief that he would faithfully serve the nation and the party with loyalty and honour. To now hear such accusations from someone I entrusted with these significant roles is deeply painful. It is difficult to reconcile these statements with the Datuk Seri Husni I once placed so much trust in,” Najib said.

The trial continues.

Read also:
1MDB-Tanore: Najib denies signature in documents, says there's no BOA meeting with Shahrol
Najib: Shahrol, too, should be in the dock for 1MDB-Tanore
1MDB-Tanore: Najib cites Swiss judgement against PSI execs, says he is not implicated in fund misappropriation
Najib: I don’t have personal interests in PSI deals, quizzed Bakke and board over opening of JV account before approval