PUTRAJAYA: A former investigating officer told the High Court that Datuk Seri Najib Razak held the power to reject any financial decisions made by the board of directors of 1Malaysia Development Bhd (1MDB).
Retired police officer Senior Asst Comm R. Rajagopal said this was because any decision with major implications on the country’s economy must be referred to Najib in his capacity as the prime minister.
According to the company's Memorandum & Articles of Association (M&A), Najib had the authority as his approval or sanction was required for matters that would have implications to the country, the witness said.
Rajagopal, who was the defence 11th witness, was under re-examination on Tuesday (April 8) by Najib's lead counsel Tan Sri Muhammad Shafee Abdullah at his graft trial for the alleged misappropriation of RM2.28bil in 1MDB funds here.
Muhammad Shafee: What happens if he refuses (the decisions by the BOD)?
Rajagopal: If he refuses, it will have to go back to the board of directors and go back to the 1MDB shareholder. They have to satisfy the shareholder as to why they need the approval.
Najib held multiple roles in the sovereign wealth fund; as the sole shareholder in his capacity as the Finance Minister (1MDB was a company under the Minister of Finance Inc), the chairman of the 1MDB Board of Advisors (BOA), and the then prime minister.
To a question by Muhammad Shafee, Rajagopal said based on his investigation into 1MDB, there was no direct evidence to show that Najib had instructed for the company's funds to be used for his personal benefit.
The witness also said he did not come across any direct evidence indicating that Najib had directed where the money should go but based on the company’s M&A, any transaction must be decided by the board of directors and approved by the shareholder (Najib).
Rajagopal also told the court that neither he nor his team received instructions to withhold or delay their investigation into the 1MDB investigation.
Muhammad Shafee: During Datuk Seri Najib's time, did you or your team receive instructions to withhold or delay investigations?
Rajagopal: Not to my knowledge.
On Oct 30, last year, 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 Wednesday (April 9).
