Najib denies using 1MDB funds meant for TRX City to support Umno, BN

Monday 20 Jan 2025

PUTRAJAYA (Jan 20): Former prime minister Datuk Seri Najib Razak on Monday denied that funds from 1Malaysia Development Bhd (1MDB), meant for the Tun Razak Exchange (TRX City) project, were instead used to help fund Umno and Barisan Nasional (BN), and to maintain his hold on Umno to win the general election in 2013.

When questioned by deputy public prosecutor (DPP) Mohamad Mustaffa P Kunyalam about the March 12, 2013 deal with Aabar Investments PJS for the TRX City project worth US$3 billion, Najib agreed that the deal involved the United Arab Emirates crown prince.

But the former prime minister claimed to have no recollection if fugitive Low Taek Jho (Jho Low) was present at the signing of the deal, saying his focus was on the crown prince. However, Najib admitted that Jho Low played a role in the deal.

Najib also said he could not remember whether former 1MDB chairman Tan Sri Che Lodin Wok Kamaruddin, former chief executive officer Datuk Shahrol Azral Ibrahim Halmi, and former general counsel Jasmine Loo Ai Swan were there.

Mustaffa then asked Najib if sealing the TRX City deal was important to him because the 13th general election was approaching, but the former finance minister said it had nothing to do with the general election, which was held on May 5, 2013.

Below is an excerpt of Mustaffa's cross-examination of Najib:

Mustaffa: I put it to you that the issuance of the US$3 billion bond with the International Petroleum Investment Company (IPIC) was for the use of the Umno political funds from 1MDB?

Najib: I disagree.

Mustaffa: The issuance of cheques to Umno, BN and others by yourself, on receiving funds from 1MDB, was for Umno’s benefit?

Najib: I disagree.

Mustaffa: The 1MDB funds were used by you, so that you could maintain your posts as the Umno president and BN chairman?

Najib: I disagree.

Mustaffa: I put it to you that the funds from the project were used for your own benefit, as suggested.

Najib: I disagree.

The former prime minister is on trial on four counts of abuse of power involving RM2.37 billion and 21 money laundering charges. Part of the charges included funds paid to Umno.

Former chief secretary to the government Tan Sri Mohd Sidek Hassan and former 1MDB CEO Mohd Hazem Abdul Rahman, who testified as prosecution witnesses, said that 1MDB was set up to assist Umno.

Najib was also questioned by DPP T Deepa Nair, who suggested that 1MDB did not want to reveal further details of its Brazen Sky Ltd deal to its auditor KPMG, because the funds in the Brazen Sky deal had been used for BN.

“This is entirely false. KPMG wanted additional documents, but the management said what they (the KPMG auditors) possess was excessive. That was the difference of opinion between 1MDB and KPMG,” Najib said.

In his defence testimony during examination-in-chief by his counsel Tan Sri Muhammad Shafee Abdullah, Najib had denied Sidek and Hazem’s testimony that 1MDB funds were used to fund Umno.

KPMG had refused to sign off on 1MDB’s audit in December 2013, and was replaced with Deloitte.

Separately, in a separate trial in Kuala Lumpur, 1MDB’s former subsidiary SRC International Sdn Bhd and SRC’s subsidiaries Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd had begun a RM19.5 million suit against Umno and Umno Selangor. The trial's proceeding judge is Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.

Edited ByTan Choe Choe

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