1MDB board was part of charade hiding money transfers to Umno, High Court told

KUALA LUMPUR: The High Court was told that 1Malaysia Development Bhd (1MDB)'s board of directors were part of a "sandiwara" (drama) that concealed information about 1MDB funds being channelled to Umno.

Former 1MDB CEO Mohd Hazem Abdul Rahman said this at the RM2.28bil 1MDB trial involving former prime minister Datuk Seri Najib Razak here on Thursday (May 27).

In his witness statement, he said that Umno had benefited from 1MDB monies.

Najib was the Umno president at that time.

During a cross-examination by lawyer Wan Aizuddin Wan Mohammed, the 10th witness was asked about 1MDB's attempt to repatriate funds from overseas investments in 2014.

Hazem said those on the board knew the real purpose for the money, allegedly for Umno's use.

Wan Aizuddin: Is there a reason for you to say that everybody on the board knew the money belonged to Umno... that everyone knew the real purpose of the money?

Mohd Hazem: Yes.

Wan Aizuddin: Why didn't you put it on the record (official 1MDB meeting minutes) that these funds belonged to Umno?

Mohd Hazem: This is a scheme. It shouldn't be on record.

Wan Aizuddin: So you are saying that this was a conspiracy all the board members participated in?

Mohd Hazem: Yes.

The defence counsel then suggested that what was reported in the minutes was "just for show".

"They (board members) knew what was at stake," Mohd Hazem replied.

Wan Aizuddin: So you are saying that whatever was recorded in the minutes about repatriation of the funds is a "sandiwara"?

Mohd Hazem: Yes.

The witness also referred to his witness statement where he stated he had met Najib at the former premiere's house on Dec 15,2013, for a discussion.

Wan Aizuddin then said the Dec 15 meeting was one of two where Mohd Hazem had the opportunity to inform Najib about his "reservation and suspicions" on 1MDB operations.

"These meetings were not one-on-one," Mohd Hazem replied.

Wan Aizuddin: You could have just approached him afterwards.

Mohd Hazem: There is no point for me to ask if he already knew.

Wan Aizuddin: During these meetings, was there anything coming straight from my client's mouth that these funds were for Umno?

Mohd Hazem: No (never heard from Najib himself).

Wan Aizuddin: And the only basis of your belief (that the 1MDB overseas funds belonged to Umno) was what was told to you by (fugitive financier) Low Taek Jho?

Mohd Hazem: Low and (Najib's late principal private secretary) Datuk Azlin Alias.

Najib, 68, is facing four charges of abusing his position to obtain gratification totalling RM2.28bil in 1MDB funds and 21 counts of money laundering involving the same money.

The hearing continues on Monday (May 31) before Justice Collin Lawrence Sequerah.