KUALA LUMPUR: The practice of issuing government letters of support (LOS) to secure loans only points to a weak government, the High Court heard.
Former Finance Ministry deputy secretary-general Datuk Siti Zauyah Mohd Desa said this in her testimony in the RM2.28bil 1Malaysia Development Bhd (1MDB) trial involving former prime minister Datuk Seri Najib Razak here on Tuesday (Sept 6).
ALSO READ: Witness not sure if 1MDB support letter brought up in Parliament
The 63-year-old witness was asked about an LOS issued for 1MDB to raise US$3bil for a joint venture with Aabar Investments BVI Co.
The proposal for 1MDB's need for the LOS was prepared by the Finance Ministry and presented to Cabinet for approval.
ALSO READ: 1MDB: MACC still investigating individuals overseas linked to scandal
"It was too obvious that our government was weak," Siti Zauyah said during cross-examination by Najib's lawyer Wan Aizuddin Wan Mohammed.
When asked further by the lawyer, Siti Zauyah said "the fact that we have to issue (a) letter of support shows low confidence".
Wan Aizuddin: Low confidence? By whom?
Siti Zauyah: Whoever wants to subscribe to the loan, whoever wants to provide the loan.
The lawyer then countered the witness by saying that she herself had said the LOS was a necessity in the proposal.
Siti Zauyah: I didn't say that.
Wan Aizuddin: Who said that?
Siti Zauyah: The (former) Treasury sec-gen (Tan Sri Mohd Irwan Serigar Abdullah).
The witness said she was forced by the sec-gen to include it in the proposal.
"But his choice is not the right choice for the country," Siti Zauyah added.
Wan Aizuddin: Is that your personal opinion?
Siti Zauyah: Yes and also the Treasury solicitor's views.
Wan Aizuddin: And you conveyed this to him (Mohd Irwan)?
Siti Zauyah: Yes.
Wan Aizuddin: And he moved forward with it, does it frustrate you?
Siti Zauyah: It is his decision. My concern is to alert him to the liabilities.
Najib, 69, is facing four charges of using his position to obtain bribes totalling RM2.28bil from 1MDB funds and 21 charges of money laundering involving the same amount.
The trial before Justice Collin Lawrence Sequerah continues this afternoon.
