PUTRAJAYA (March 26): Former prime minister Datuk Seri Najib Razak's lack of immediate action on proposals regarding the Terengganu Investment Authority (TIA) and its subsequent federalisation into 1Malaysia Development Bhd (1MDB) suggests he had no vested interest in the strategic investment fund, the court heard on Wednesday.

Former Cabinet minister and Umno Selangor chief Tan Sri Noh Omar said this when testifying in the ongoing 1MDB-Tanore trial, where Najib is facing four abuse of power and 21 money-laundering charges involving the misappropriation of over RM2 billion from 1MDB.

Noh's testimony, as the defence's 15th witness, focused on Najib's first abuse of power charge, which is related to the government guarantee provided for the RM5 billion Islamic Medium Term Notes (IMTN) issued through TIA, and its transformation into 1MDB.

Lead defence counsel Tan Sri Muhammad Shafee Abdullah asked: "In the Cabinet minutes from the start of TIA's mention, did Najib show any indication to federalise TIA?"

Noh replied: "From what I see and my experience in the Cabinet, the matter first came up on Dec 12, 2008, when Tun Abdullah Ahmad Badawi was the prime minister. Only four months later, in April 2009, did the Ministry of Finance table a memorandum on TIA. That means Najib didn't prepare this. Why wait four months to bring the memorandum? The longest it can be delayed is one month. The four-month delay shows the Finance Ministry didn't pre-prepare it. It was a new idea, which is why it took four months." 

The federalisation of TIA resulted in Najib holding multiple key roles within 1MDB: as the sole shareholder, being the minister of finance (1MDB was a company under Minister of Finance Inc), as chairman of 1MDB's board of advisors (BOA), and as the final approving authority for certain company deals as he was then prime minister.

The prosecution argued that Najib was the key decision-maker at the troubled state-owned firm, supported by certain articles in the company's memorandum and articles of association (M&A). They also contended that the imprisoned 71-year-old had vested interests in 1MDB. 

In his decision calling for Najib to enter his defence, trial judge Datuk Collin Lawrence Sequerah found that court evidence, as a whole, showed that Najib would not have obtained the monies in question without his "positive actions" related to 1MDB, to secure his vested interests. 

Testifying in his own defence, Najib had repeatedly stressed that 1MDB was neither his idea nor his "baby."

Noh held the entrepreneur and cooperatives development portfolio in 2008 under Abdullah Badawi and was the minister of agriculture and agro-based industries in 2009 when Najib led the government, so he attended all Cabinet meetings concerning TIA, primarily from December 2008 to around September 2009.

In explaining the Cabinet's decision-making process, Noh said proposals were presented via a memorandum, with decisions made by consensus.

"If all Cabinet members agree, a memorandum is passed. However, if two or three people disagree, the matter will be brought to the next meeting. There is also a special Cabinet committee to [resolve] issues within the memorandum. Whatever is presented in the memorandum will be discussed first, only then is a decision made," he said.

When asked if the same decisions regarding TIA would have been reached if Najib had been absent from the meetings, Noh said: "Whether the PM or deputy PM chairs the Cabinet meeting, it's the Cabinet's decision, not the PM's decision."

During cross-examination by deputy public prosecutor (DPP) Kamal Baharin Omar on whether Najib had declared any interest in TIA, Noh said: "No, [and] I'm surprised by that question."

Now a Bersatu supreme council member, Noh also testified that he was unaware about TIA before the Dec 12 Cabinet meeting.

He further testified that Najib had offered to recuse himself from a Cabinet meeting when an issue regarding CIMB Group arose, as Najib's brother, Tan Sri Nazir Razak, was then the group's chairman.

The 1MDB-Tanore trial, so named as the alleged crimes involved transactions between 1MDB and Tanore Finance Corporation that was controlled by Jho Low's associate Eric Tan Kim Loong, will continue on Thursday.

Read also:
1MDB-Tanore: Najib says still left speculating on what his personal interest is in abuse of power charge
1MDB-Tanore: Najib reiterates that he never inserted influence in TIA’s federalization