I may have been wrong in assuming Najib wanted to push for RM5bil TIA bonds, says former 1MDB director

KUALA LUMPUR: Former 1Malaysia Development Bhd (1MDB) non-executive director Tan Sri Ismee Ismail told the High Court here that he could have been wrong in his assumption that Datuk Seri Najib Razak wanted to push for the issuance of the RM5bil Islamic Medium Term Notes (IMTN) bonds by the Terengganu Investment Bhd (TIA) in 2009.

The witness was questioned by Najib's lawyer Datuk Hariharan Tara Singh on what had transpired during the early days of TIA's formation, an entity that was established on Feb 27, 2009, as a state investment arm but later morphed into 1MDB in September the same year.

TIA was then owned by the Mentri Besar Incorporated, with Terengganu ruler and then Yang di-Pertuan Agong Sultan Mizan Zainal Abidin as the majority owner.

During cross-examination here on Thursday (March 17), Ismee agreed with Hariharan that based on a letter from the Terengganu Palace to TIA, Najib had actually agreed to withhold the issuance of the bond.

Hariharan: Based on the letter, do you agree that you had the wrong impression earlier about Najib? What you said in your witness statement was merely your assumption?

Ismee: Yes, my assumption may have been wrong.

In his witness statement, Ismee said he assumed Najib had wanted to proceed with the IMTN issuance despite Sultan Mizan wanting to put a stop to it.

He stated that he and former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi had gone to have an audience with the Sultan on May 22, 2009, regarding TIA, where the Sultan expressed his intention to have the IMTN issuance postponed.

At a meeting with Najib later that night, Ismee said from Najib's reaction and tone, he had thought Najib wanted to proceed with the issuance despite the palace's order.

Najib, 69, faces 25 charges in total – four for abuse of power that allegedly brought him financial benefit to the tune of RM2.28bil; and 21 for money laundering involving the same amount of money.

He faces imprisonment of up to 20 years and a fine of up to five times the sum or value of the gratification or RM10,000, whichever is higher, if found guilty.

The hearing before Justice Collin Lawrence Sequerah continues on Monday (March 21).