1MDB-Tanore: Najib regrets Bakke didn't meet him personally before resignation
16 Jan 2025, 02:50 pm
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PUTRAJAYA (Jan 16): Former prime minister Datuk Seri Najib Razak said that he wished former 1Malaysia Development Bhd (1MDB) chairman Tan Sri Mohd Bakke Salleh had seen him in person before his resignation from the strategic development firm.

Testifying in his defence in the ongoing 1MDB-Tanore trial, Najib also said he didn't delve deeper into Bakke's resignation, because it was his free will if he wanted to resign.

During cross-examination on Thursday, deputy public prosecutor Mohamad Mustaffa P Kunyalam highlighted that Bakke's resignation was sudden and asked why Najib didn't reach out to the well-known corporate figure to find out more.

"I didn't call him, yes. He wanted to resign, ok la. If there is anything serious, it is incumbent on him to see me. If an officer resigns, he resigns.

"He knows me personally. He has access to me. Why am I to be blamed for someone's resignation," the 71-year-old said.

Bakke, the prosecution's 15th witness, had previously testified that he resigned due to glaring mismanagement at the state-owned company, the trigger being 1MDB’s joint venture (JV) with Saudi Arabia-based PetroSaudi International Ltd (PSI), under which 1MDB undertook an equity investment of US$1 billion while PSI injected US$1.5 billion worth of assets into the JV.

However, after the JV agreement was signed, PSI said its US$1.5 billion asset injection into the JV company entailed a US$700 million advance for 1MDB, which meant 1MDB owed PSI.

Through the instructions of former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, 1MDB had diverted US$700 million from the US$1 billion JV equity investment into an account belonging to Good Star Ltd, on the grounds that Good Star was PSI’s affiliate. In truth, Good Star was linked to fugitive businessman Low Taek Jho (Jho Low).

Bakke said the time constraints to approve the JV, coupled with the management’s blatant disregard of the board’s advice, and the split-remittance combined to prompt his resignation on Oct 19, 2009, only a few weeks after his reappointment on Aug 11.

Bakke said he instructed his secretary to personally send his resignation letter directly to the Prime Minister’s Office in Putrajaya. Prior to that, he sent an SMS to Najib detailing the mismanagement, only to be met with silence.

Najib does not remember getting Bakke's SMS

Bakke had testified that he only sent a message, as opposed to seeing the then-PM, because he suspected that Najib had a personal interest in these errant transactions.

On Thursday, Najib confirmed that his office had received Bakke's resignation letter, but it didn't elaborate on the reasons why Bakke was leaving the company.

When asked about the SMS and his purported silence, Najib replied that he didn't remember getting Bakke's message.

Mustaffa: I put it to you that you didn't want to see him because you don't want to know the reasons [why he left], you didn't want to probe into the [company's] mismanagement.

Najib: I disagree. These are not my cronies, these are competent professionals.

Mustaffa: I put it to you that you knew something was amiss when Bakke resigned.

Najib: Disagree.

Najib confirms phone call to Bakke before board meeting

One of the bombshell revelations in Bakke's testimony was the infamous phone call he received from Najib via Jho Low's phone before a board meeting on Sept 26, 2009.

Bakke testified that just before that meeting regarding the company's JV with PSI, Jho Low passed his phone to Bakke where Najib, on the other end of the call, asked the chairman to "forget all the past" troubling 1MDB transactions and "firm up" the JV with PSI.  

Najib confirmed that the phone call did take place, testifying that he spoke to Bakke via Jho Low as a matter of convenience.

Mustaffa: You spoke to Bakke through Jho Low's phone?

Najib: Yes.

Mustaffa: Why not speak to Bakke directly? [You have his number.]

Najib: It's a matter of convenience. I didn't think there was anything wrong with it. At that time, I didn't know about the mischief [at 1MDB].

In this trial, Najib is charged with four counts of abuse of power and 21 counts of money laundering.

The trial before presiding judge Datuk Collin Lawrence Sequerah continues.

Edited ByIsabelle Francis
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