KUALA LUMPUR: The High Court was told that the removal of KPMG as 1Malaysia Development Bhd (1MDB) auditor was not a decision by Datuk Seri Najib Razak.
Instead, the decision was by the 1MDB board of directors.
The prosecution contended that Najib had pressured 1MDB to drop KPMG.
Najib recalled being presented with a letter outlining the reasons for KPMG's removal, along with the Special Notice under Section 153 and Section 172(4) of the Companies Act 1965."
"However, I could not have prepared the Special Notice according to the provisions of the Companies Act 1965 on my own. The prepared draft would have to come from 1MDB.
"That allegation is preposterous because there was a letter by 1MDB explaining the justification for the removal of KPMG and the appointment of Deloitte KassimChan to replace KPMG as the company’s auditor," Najib said on the witness stand at the RM2.28bil 1MDB trial here on Tuesday (Dec 10).
Najib said he had given clear direction to both 1MDB and KPMG to take the necessary steps to finalise the accounts by Dec 31, 2013.
According to Najib, a meeting with KPMG was held on Dec 12, 2013 at his residence in Langgak Duta and KPMG was represented by its managing partner Datuk Johan Idris.
Others in attendance were 1MDB board of directors chairman Tan Sri Lodin Wok Kamaruddin, former 1MDB CEO Mohd Hazem Abd Rahman and former 1MDB chief financial officer Azmi Tahir.
"To the 1MDB management, I had instructed them to assist and speak to Bridge Global Partners to obtain the necessary information and documents for KPMG to enable the company’s auditors to complete the audit.
"For KPMG, I even went on to request that KPMG fly to Hong Kong to get the necessary comfort to complete the audit. I remember distinctly reminding all parties, 1MDB and KPMG alike, during the meeting to exercise good governance in their conduct in the matter," he said.
On Oct 30, Najib was ordered by the High Court to enter his defence on four counts of using his position to obtain RM2.28bil gratification from 1MDB's funds and 21 counts of money laundering involving the same amount.
The hearing continues before Justice Collin Lawrence Sequerah on Thursday (Dec 12).
