KUALA LUMPUR: Former 1Malaysia Development Bhd (1MDB) CEO Mohd Hazem Abd Rahman should have been sent to jail for criminal breach of trust (CBT) and money laundering, the High Court heard.
Lead defence counsel Tan Sri Muhammad Shafee Abdullah made the scathing suggestion after another intense grilling of Mohd Hazem, the 10th prosecution witness on the stand, during former prime minister Datuk Seri Najib Razak’s RM2.28bil 1MDB trial here yesterday.
The lawyer suggested that Mohd Hazem had conspired with other 1MDB senior officers – Azmi Tahir and Terrence Geh, former CEO Datuk Shahrol Azral Ibrahim Halmi as well as fugitive financier Low Taek Jho to obtain a US$975mil (RM4.12bil) loan from Deutsche Bank for the purpose of a buyback of its options from one of its investment partners.
However, parts of the said loan were never used for the intended purpose but was transferred from 1MDB Energy Holdings Ltd in two tranches – US$223mil (RM940.4mil) and US$457mil (RM1.93bil) – to a shell entity, Aabar Investments PJS Ltd (Seychelles), in September 2014.
The funds from the two tranches, in turn, were transferred to various entities passing through Bridge Global Absolute Return Fund, Lambasa Global Opportunity Fund, Universal Ventures Fund, Brazen Sky Ltd and 1MDB Global Investment Ltd.
The transactions, Muhammad Shafee contended, were made without the authorisation of 1MDB’s board of directors (BOD).
Muhammad Shafee suggested that the loan from Deutsche Bank was for a “specific purpose” and when the purpose was not fulfilled, Mohd Hazem and the others had committed CBT of the company’s funds.
“Yes, technically,” the witness replied.
Muhammad Shafee: You’ve committed CBT. Because you’ve never got authority from anybody to do this.
Mohd Hazem: Yes.
Muhammad Shafee: When you were transferring all this, did you get permission from Bank Negara?
Mohd Hazem: I’m not sure.
Muhammad Shafee: These monies originated from a Malaysian company.
Mohd Hazem: Yes.
Muhammad Shafee: So you have to get permission from Bank Negara.
Mohd Hazem: I think so, yes.
Muhammad Shafee: If you don’t get permission, that’s another offence.
Mohd Hazem: I don’t know but likelihood, yes.
Muhammad Shafee: Technically, that is CBT. It is also money laundering.
Mohd Hazem: Yes.
To another question, Mohd Hazem said nobody had investigated him over these alleged offences.
“The Malaysian Anti-Corruption Commission has been very kind to you,” said Muhammad Shafee.
The court also heard that during a BOD meeting on April 22, 2014, 1MDB’s shareholder Minister of Finance Inc had instructed the board to repatriate the overseas investments as soon as possible and for this to be invested in local institutions.
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 before Justice Collin Lawrence Sequerah resumes on Sept 13.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
