KUALA LUMPUR (Dec 9): Former prime minister Datuk Seri Najib Razak said that he supported 1Malaysia Development Bhd's (1MDB) ambitions to acquire independent power producers (IPPs), by bringing down cost of power, for the well-being of Malaysians.
Testifying in his defence in the ongoing 1MDB-Tanore trial, Najib said: "My support for 1MDB’s initiative to acquire IPPs was motivated by Malaysia's national interest. The acquisition of IPPs was intended to strengthen 1MDB’s position and facilitate energy rationalisation measures, which were expected to address high power purchase agreement rates.
"This effort aimed to lower electricity cost, reduce the financial burden on consumers, and improve the overall well-being of Malaysians."
Najib is in the midst of giving his evidence regarding his second abuse of power charge, where Najib is accused of taking active steps to gratify himself with RM90,899,927.28 (US$30 million) of 1MDB funds.
The monies, which can be traced back to the “Aabar BVI” phase of the 1MDB scandal, involved the issuance of two separate bonds by 1MDB through its wholly owned subsidiaries 1MDB Energy Ltd (1MEL) and 1MDB Energy (Langat) Ltd (1MELL) in 2012.
These two transactions concerned the acquisition of two independent power producers, namely Tanjong Energy Holdings Sdn Bhd and Mastika Lagenda Sdn Bhd. Mastika owned 75% shares in Genting Sanyen Sdn Bhd.
To make the transactions, 1MDB acted through 1MEL, 1MELL, and 1MDB Energy Holdings Ltd.
Najib's answer is related to the first limb of the second charge, where he is accused of approving 1MDB Energy to submit a binding bid to acquire Tanjong Energy for RM10.6 billion on 1MDB premises on Feb 9, 2012.
On Monday, Najib denied issuing any such written approval.
"In fact, during my tenure as the PM, I never issued any written approval pursuant to Article 117 of the 1MDB's memorandum and articles of association," he stressed.
In gist, Article 117 states that all substantive transactions would have to go through the PM's approval.
On the stand, Najib also testified that he had no personal interest in the deals.
"I categorically deny the allegation that I abused my power when I approved 1MDB's submission of the RM10.6 billion binding bid offer for the acquisition of Tanjong Energy. My approval was based on the fact that the 1MDB board of directors had already approved the submission of the binding bid offer one day earlier. My role was merely to endorse the decision made by the board, in accordance with statutory duties and established governance processes," he said.
In this trial, Najib is accused of four abuses of power and 21 money-laundering charges.
The trial before presiding judge Datuk Collin Lawrence Sequerah continues.