Ex-CEO: 1MDB was set up to fund Umno-linked companies

 

1MDB TRIAL | 1MDB was established to funnel money to companies linked to Umno, testified the sovereign wealth fund’s former CEO.

Tenth prosecution witness Mohd Hazem Abdul Rahman confirmed this during the 1MDB corruption trial of former premier Najib Abdul Razak today.

The witness claimed that funds from 1MDB were used to help contractors linked to the political party in the 1MDB-linked Tun Razak Exchange (TRX) mega project.

Hazem was answering a question by the accused's lead defence counsel Muhammad Shafee Abdullah during cross-examination.

Shafee had questioned Hazem over a portion of the latter’s witness statement where he (Hazem) claimed that 1MDB-linked businessperson Jho Low told him that the sovereign wealth fund was set up to help Umno.

Shafee: In relation to this (that 1MDB was allegedly set up) to benefit Umno, where did you hear it from?

Hazem: Heard it from Jho Low.

Shafee: Jho Low told you that this money and how it is transacted (from 1MDB) to various projects are for the benefit of Umno?

Hazem: Yes.

Shafee: When did he say this?

Hazem: Before I joined 1MDB.

Hazem joined 1MDB in 2012 as its chief operating officer before becoming CEO a year later in 2013.

Shafee: Your interpretation was in consonant with law, this guy (Jho Low, claimed that 1MDB was) helping Umno, was that the contract for TRX given to Umno-linked companies?

Hazem: Yes.

Shafee: You agree in hindsight that you saw the money which travelled out of 1MDB was at 1MDB’s expense?

Hazem: Yes.

At one point during the proceedings, Hazem also told the court that Najib was his "ultimate boss".

This was similar to what was testified by former Retirement Fund Incorporated (KWAP) CEO Azian Mohd Noh in a separate corruption trial of the former premier.

On June 10, 2019, during Najib's RM42 million SRC International corruption trial, prosecution witness Azian testified that the accused, when he was the prime minister, was the "ultimate boss" in regard to his influence over the fund.

Meanwhile, Hazem testified that if he had known about what was allegedly going on at 1MDB at the time, he would not have accepted the offer to be its CEO.

He testified that during his time at 1MDB, he harboured a lot of "concern" about how funds were utilised at 1MDB, among others.

However, during cross-examination, he conceded that during his time at 1MDB from 2012 to 2015, he did not see specific evidence of money flowing out of 1MDB to Umno.

Shafee: Have you seen any proof that this money (from 1MDB) had gone into Umno?

Hazem: During my time, no.

Shafee: Did you enquire about how Umno benefited?

Hazem: No.

Shafee: Have you seen contracts awarded to Umno?

Hazem: No.

Shafee: I suggest that Jho Low could have misrepresented to you completely as there was no way for you to determine the truth of what he said?

Hazem: He could have.

Shafee: With hindsight, do you see that because Jho Low benefited so much, he is now on the run?

Hazem: Yes.

Shafee: You clearly see how this was a scheme by Jho Low?

Hazem: Jho Low was the mastermind.

Hazem also testified that despite having concerns about the alleged funneling of 1MDB funds to help Umno, he did not directly confront Najib about the issue.

The witness said he did not try to arrange to meet Najib through the former premier's principal private secretary Azlin Alias and then 1MDB chairperson Lodin Wak Kamaruddin.

Shafee: Nobody in your knowledge spoke directly to the (then) prime minister (Najib) and spoke bluntly (about the issue)?

Hazem: From my knowledge, as far as I was concerned, from the markets, about 1MDB, the media, with Najib being the prime minister in charge of 1MDB, would have known something was going on. The issue was raised in Parliament.

The trial before Kuala Lumpur High Court judge Collin Lawrence Sequerah would resume tomorrow morning.

Najib is on trial for four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of 1MDB's funds.

Aside from being the former prime minister, the accused was also finance minister and chairperson of the board of advisors of 1MDB at the time.

1MDB was fully owned by the Minister of Finance Incorporated (MOF Inc). - Mkini