‘Management responsible for funds transfer, not Najib’

KUALA LUMPUR: Datuk Seri Najib Razak had never directed 1Malaysia Development Bhd (1MDB) to transfer a total of US$1.03bil to a company owned by fugitive businessman Low Taek Jho or Jho Low, the High Court has heard.

Malaysian Anti-Corruption Commission senior officer Nur Aida Arifin said 1MDB’s top management was responsible for the transactions between 1MDB and Low’s company Good Star Ltd.

The 49th prosecution witness said the management comprised 1MDB former chief executive officer Datuk Shahrol Azral Ibrahim Halmi, former chief financial officer Radhi Mohamad, and former executive directors Terence Geh Choh Heng and Casey Tang Keng Chee.

The witness, who was under cross-examination by Najib’s lawyer Wan Azwan Aiman, agreed with the suggestion that based on the documents presented in court, the management involved then had allowed the remittance of the funds to Good Star.

Nur Aida also agreed that during her investigation into 1MDB, she had never asked Najib if he had indeed instructed the transfer of US$700mil to Good Star.

The transfer is related to 1MDB’s joint venture (JV) with Saudi Arabia-based PetroSaudi International Ltd (PSI).

It was previously heard in court that in an agreement signed on Sept 28, 2009, 1MDB had injected US$1bil funds in cash as a starting capital for a 40% stake in the JV company while the PetroSaudi Holdings Cayman (a company which was purportedly a subsidiary of PSI) injected assets worth US$108mil for a 60% stake.

However, it was said that US$700mil from the US$1bil was diverted into Good Star.

Throughout the trial, Najib’s defence had argued that the top management of 1MDB had hoodwinked Najib and worked in cahoots with Low.

Najib, 70, is on trial for 25 charges – 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.

The hearing continues before Justice Collin Lawrence Sequerah today.