KUALA LUMPUR (April 30): The late Datuk Azlin Alias, who had been former prime minister Datuk Seri Najib Razak's principal private secretary up until his death, had instructed former 1Malaysia Development Bhd’s (1MDB) chief financial officer (CFO) Azmi Tahir to sign off on some funds transfers meant for investments including the multi-billion Tun Razak Exchange project, the High Court heard on Tuesday.

Malaysian Anti-Corruption Commission (MACC) investigating officer (IO) Nur Aida Arifin said that based on her investigations, Azmi had told the anti-graft body that he was merely following orders when he signed forms to transfer billions to fiduciary funds firms Devonshire Funds Ltd and Enterprise Emerging Market Fund (EEMF).

"The signature is Azmi's, but based on his statement to MACC, he said he can't remember the companies because he received instructions from Azlin to sign the documents [from BSI Bank] which were in a bundle," she said, adding that the ex-CFO was merely following orders.

The prosecution's 49th witness in the 1MDB-Tanore trial said this during cross-examination by defence counsel's Wan Azwan Aiman, who was trying to establish that Najib did not instruct nor authorise the transfers of these funds, but rather, it was Azmi's signature greenlighting the transfers.

Nur Aida: He signed [the documents] in the bundle, but he didn't look through it specifically because Azlin told him to just sign.

Wan Azwan: In Malay, we have a phrase "membabi buta". So he just signed it blindly?

Nur Aida: That is your take on it. In [the statement he gave us] I don't have that.

This is about the third phase of the 1MDB scam which concerned a sham joint-venture (JV) between 1MDB and Abu Dhabi-based Aabar Investments (Aabar), called the Abu Dhabi Malaysia Investment Company Ltd (ADMIC).

Datuk Seri Najib Razak is accused of receiving US$680 million between March and April 2013. (Photo by Sam Fong/The Edge)

In gist, the Ministry of Finance (MOF), which was headed by Najib, issued a Letter of Support (LOS) in March 2013 guaranteeing 1MDB's investments in the JV. Abu Dhabi's International Petroleum Investment Co (IPIC) was to guarantee Aabar's investment. A loan of US$3 billion was raised through a bond issuance.

The monies were deposited into 1MDB Global Investment Ltd's (1MDBGIL) account with BSI Bank at Lugano in Switzerland.

From that sum, US$1,060,606,065 was transferred into Devonshire Fund Ltd and EEMF within days of the LOS being signed. Some of these monies were then transferred to Granton Property Holding Ltd and Tanore Finance Corp, both controlled by Eric Tan, a close associate of fugitive Low Taek Jho (Jho Low).

Datin Seri Rosmah Mansor, wife of Datuk Seri Najib Razak, turning up at the High Court in show of support for her husband. (Photo by Sam Fong/The Edge)

The prosecution has maintained that the US$680 million Najib is accused of receiving between March and April 2013, stems from these series of transactions. This is the centre of the third charge Najib faces in this trial.

While on the stand in November 2022, former treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah testified that Azlin had also insisted that the MOF expedite the issuance of the LOS through the preparation of some documents.

He testified that Azlin had complained that the MOF was slow in its task as it had to be done urgently due to the involvement of the 1MDB financial adviser and bond arranger Goldman Sachs, and the arrival of the United Arab Emirates’ (UAE) crown prince. The MOF eventually prepared the requested memorandum without the required supporting documents.

Defence: 'Cabinet gave its approval for the LOS'

During the proceedings on Tuesday, Nur Aida also agreed with the defence counsel that the LOS was only signed following cabinet approval.

Wan Azwan: But before the LOS was signed, [Najib] got the unanimous agreement from Cabinet?

Nur Aida: Agree.

Wan Azwan: Before getting Cabinet approval, an MOF memorandum was also issued which led to the Cabinet's decision?

Nur Aida: Agree.

Najib's approval of the LOS is the subject matter of the third abuse of power charge. Nur Aida also agreed that Najib had no personal interest when he presented the proposal for Cabinet approval in March 2013.

She however disagreed that Najib did not abuse his power in getting the Cabinet's approval for the LOS.

Previously, former deputy secretary-general at the Ministry of Finance (MOF) Datuk Siti Zauyah Mohd Desa said that the LOS which led to the issuance of the US$3 billion bond was not the right move for the country because its fiscal situation was “weak”.

The trial before judge Collin Lawrence Sequerah resumes on Thursday (May 2).

Source: TheEdge - 1 May 2024