A man of many hats: Najib being led into court yesterday. He was prime minister, finance minister and chairman of the 1MDB board of directors when the LOS for the US$1.3bil loan was given.
KUALA LUMPUR: The management of 1Malaysia Development Bhd (1MDB) refused to give any feedback on how the money was spent after securing a US$3bil loan with a letter of support (LOS) issued by the government.
Former Finance Ministry deputy secretary-general Datuk Siti Zauyah Mohd Desa told the High Court that many efforts were made by the ministry to get information from 1MDB on how the US$3bil was used, but the company never responded.
“I tried to contact the management of 1MDB through letters and phone calls.
“We also contacted the representative of 1MDB at the time, Zahid Taib, for feedback and to submit a report to the Finance Ministry, but there was no reply.
“I also confirm that I have never seen the joint venture agreement document between 1MDB and Aabar Investment BVI Co, which was in their LOS application to the government to secure the US$3bil loan,” she said, according to Bernama.
Siti Zauyah, 63, was cross-examined by Wan Aizuddin Wan Mohammed, representing former prime minister Datuk Seri Najib Razak in his trial involving the misappropriation of RM2.3bil from 1MDB.
The 26th prosecution witness then agreed with Wan Aizuddin’s suggestion that 1MDB’s lack of response showed the weakness of the company’s management.
Wan Aizuddin: Do you agree with me that you can’t attribute the fault of 1MDB management to the prime minister, finance minister and the chairman of the board of advisers? (All three positions were held by Najib).
Siti Zauyah: From what I can remember, there was a letter from Datuk Shahrol Azral Ibrahim Halmi (former 1MDB CEO) stating that the management cannot reveal any information about the use of the US$3bil because they have to refer to the 1MDB board of directors first.
Wan Aizuddin then referred to Siti Zauyah’s witness statement that Malaysia was now forced to pay back the 1MDB debt due to the LOS issued by the government. It was signed by Najib as finance minister in 2013.
Siti Zauyah confirmed that she had no personal knowledge of the matter but made a statement based on what she heard from the officer in charge of managing the LOS process.
Asked if she had seen any document showing that 1MDB had failed to make repayments, causing the government to bear the debt, Siti Zauyah replied: “I don’t remember ... there must be some evidence, that’s why I said that in my witness statement.”
Wan Aizuddin: Interestingly you made this statement ‘LOS signed by Najib as Minister of Finance’. Are you suggesting that the government has to bear the debt because Najib signed the LOS, therefore he is at fault?
Siti Zauyah: No comment.
Najib, 69, is facing four charges of using his position to obtain bribes totalling RM2.3bil from 1MDB funds and 21 charges of money laundering involving the same amount.
The trial before Justice Collin Lawrence Sequerah continues.
