KUALA LUMPUR (Dec 4): Former prime minister Datuk Seri Najib Razak has disputed the claim that 1Malaysia Development Bhd (1MDB), a company which fell under Ministry of Finance (MOF), had practised a "top-down approach".

Taking to the stand to testify in his defence in the 1MDB-Tanore trial, Najib countered the testimony of several witnesses in the trial, who had testified that the strategic development firm's board of directors (BOD) merely carried out Najib's wishes, conveyed via Special Rights Redeemable Preference Shareholder Resolution (SRR) and Minutes of Representative (MR).

However, on the stand on Wednesday, Najib said that if he were to sign an SSR and an MR, it would have been following the BOD's thorough evaluation on any deal, transfer, or project.

"Again, I would like to clarify that just as any other executions of any MR and SSR by MOF Inc [Minister of Finance Incorporated] raised throughout this trial were based on my belief that any such proposal that had been referred to me had been thoroughly and properly discussed, deliberated, and decided upon by [1MDB's BOD] and management through the required and expected process of due diligence incumbent on their part, I would like to maintain that unless the management or the BOD had informed me of their distrust, or as to the possible dubious nature of any proposal presented to MOF Inc, there would not be any reason for MOF Inc to doubt or inquire into the legitimacy of any proposal presented," the 71-year-old ex-PM said.

Among the witnesses who have testified about the "top-down" approach — with Najib at the helm — are 1MDB’s former chief executive officer Datuk Shahrol Azral Ibrahim Halmi, former director Tan Sri Ismee Ismail, and former legal counsel Jasmine Loo.

Loo had testified that everything needed to be "floated up" to Najib for his blessing before any project could be taken on. This is unlike the established norm with other companies, where the shareholder would be advised by the BOD on a decision the board had arrived at.

On the witness stand in February this year, Loo testified: "[My impression was that] whatever 1MDB was going to undertake, needed the blessing [of Najib], both [in his role as] PM of Malaysia and Chairman of the Board of Advisors (BOA). So, to me, that indicated that whenever 1MDB was going to undertake [anything], it needed to have [Najib's] endorsement".

However, on Wednesday, Najib disputed the testimonies of these witnesses.

"This is not true. This is again one of the lies peddled by the prosecution witnesses, to prop up the unfounded charges of abuse of position against me.

On Wednesday, Najib also disputed that the signatures on the SSR and MR — in relation to the disposal of one billion shares in 1MDB PetroSaudi Ltd, the fund’s joint-venture (JV) company with oil services company PetroSaudi International Ltd (PSI) — was not his.

According to the prosecution's opening statement in March 2010, 1MDB had entered into a "so-called" Murabaha financing agreement under the terms of which US$1 billion equity in the JV were allegedly converted into "useless" Murabaha notes, and 1MDB was required to make a sum of US$1.5 billion available to the JV.

When questioned by his counsel Tan Sri Muhammad Shafee Abdullah on whether that was his signature on the SSR and MR, Najib replied that the signatures in the documents were "weird".

Najib also testified that he was not shown these documents during the investigations and thus was deprived of the chance to have an expert verify the signatures.

During the proceedings on Wednesday, Najib also said that it was usually his style to sign his name and indicate the date.

In the trial, the defence has been contending the authenticity of Najib's signature in some of the documents.

In this trial, Najib is accused of four abuses of power and 21 money-laundering charges.

The trial before presiding judge Datuk Collin Lawrence Sequerah continues on Thursday.
 

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