KUALA LUMPUR: Datuk Seri Najib Razak held immense control over 1Malaysia Development Bhd’s (1MDB) management, using his vast powers to enable fraud against the company, causing it to suffer US$5.6bil in losses, the High Court heard.
Lawyer Datuk Lim Chee Wee said Najib used his apex position, power and influence as the then prime minister, finance minister, controller of Minister of Finance Inc (MOFInc) and sole shareholder of 1MDB, to commit acts and exert influence over 1MDB’s board of directors to execute abnormal transactions to enrich himself, his wife Datin Seri Rosmah Mansor, his stepson Riza Aziz, fugitive businessman Low Taek Jho and their families.
“As a result of these misappropriations, the plaintiffs have suffered losses amounting to US$5,644,525,051,” he said in the opening statement on the first day of the civil suit filed by 1MDB and its four subsidiaries against Najib and others.
Lim, who represented 1MDB and its four subsidiaries, said the plaintiffs would prove by documentary and witness evidence that Najib was “at the centre” of the 1MDB fraud.
Between 2009 and 2018, Najib was the sixth prime minister and also held the finance minister portfolios, controlling MOF Inc, the sole shareholder of 1MDB, he said.
Najib was also the chairman of the 1MDB board of advisors from 2009 to 2016.
“By virtue of the various hats worn and roles held, Najib exercised control over the plaintiffs’ directors and management and is a shadow director under the Companies Act 1965,” Lim said.
He said the trial was to hold Najib and his co-defendants accountable for their actions.
“This case is about betrayal; betrayal of public trust, of the rakyat who trusted and elevated a fellow citizen to the pinnacle of national leadership and a betrayal by that very same individual of national interests. The tort of misfeasance in public office deals with such betrayal,” he added.
1MDB and its subsidiaries 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd and Global Diversified Investment Company Ltd (formerly known as 1MDB Global Investments Ltd) filed the civil suit on May 7, 2021.
They named Najib, former 1MDB finance officer Terrence Geh Choh Heng, former 1MDB general counsel Jasmine Loo Ai Swan, former executive director Casey Tang Keng Chee, former chief investment officer Vincent Beng Huat Koh, former chief operations officer Radhi Mohamad, former investment director Kelvin Tan Kay Jim, as well as former SRC International Sdn Bhd chief executive officer Nik Faisal Ariff Kamil, as the defendants.
The plaintiffs claimed that the defendants had committed breach of trust, breach of fiduciary duties, abused their powers and plotted to misappropriate 1MDB’s funds.
The hearing continues before Judicial Commissioner Mohamad Redzuan Idrus today.
