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Wednesday, November 20, 2019

1MDB AUDIT REPORT TRIAL - Day 3: Final draft of 1MDB audit report given to Najib, Arul Kanda and 4 others



KEY HIGHLIGHTS
  • Final draft of 1MDB audit report given to Najib, Arul Kanda and 4 others
  • Cabinet orders 1MDB audit in March 2015
  • Defence defers cross-examination of Ali Hamsa
  • Ali Hamsa proposed copies of 1MDB audit report to be shredded
  • Playback of 1MDB meeting audio recording completed
  • Jho Low's Good Star Ltd raised in meeting
  • Heated argument heard in recording 
  • Witness identifies voices of meeting quorum
  • Ali Hamsa confirms it's his voice on audio recording
  • Prosecution plays recording of meeting linked to audit report tampering

Thank you for following Malaysiakini's live report
2.10pm - Thank you for following our live report today.

Hearing to resume tomorrow
2.07pm - The court adjourns for the day and is expected to resume at 10am tomorrow.
Justice Mohamed Zaini Mazlan also reminded all parties to be on time tomorrow as he wants to keep his promise to adjourn the hearing at 2pm for this week.
Earlier, the court also hears that Zaini allowed an application by the prosecution and defence to vacate hearings for this Friday, and next Monday and Tuesday.
This comes as lead prosecutor Gopal Sri Ram and Najib Abdul Razak's defence team led by Muhammad Shafee Abdullah have matters at higher courts on those days.

Final draft of 1MDB audit report given to Najib, Arul Kanda and 4 others
1.55pm - The court hears from a witness that a special team under the National Audit Department (NAD) tasked to audit 1MDB had sent the final draft of their report for printing on Feb 20, 2016.
NAD audit director (governance sector) Nor Salwani Muhammad testifies that a total of 60 copies were printed, and they had brought it to the Chief Government Security Office for safekeeping on Feb 21, 2016.
The report was printed for tabling to the Public Accounts Committee, she says.
According to Salwani, she had taken 10 of the copies the next day. Six copies were given to Ambrin while the other four were kept in NAD's safe.
Based on a distribution list, she tells the court Ambrin kept one of the copies and the remaining five were then distributed on the same day to five people.
They are the then prime minister Najib Abdul Razak, Najib's then chief private secretary Shukry Salleh, then 1MDB CEO Arul Kanda Kandasamy, then Chief Secretary to the Government Ali Hamsa and Dzulkifli Ahmad (then officer with the Attorney-General's Chambers).
Salwani testifies that all the other copies had been destroyed, except for one which was surrendered to the MACC on Nov 2, 2018. 

Cabinet orders 1MDB audit in March 2015
1.40pm - The prosecution calls its fifth witness, National Audit Department audit director (governance sector) Nor Salwani Muhammad to give her testimony.
Reading from a prepared witness statement, she tells the court that the then auditor-general Ambrin Buang had on March 9, 2015, ordered for an audit to be carried out on 1MDB and its companies.
This decision by Ambrin following an order by the cabinet on March 5, 2015, for the department to verify 1MDB's accounts and for all reports related to the company to be surrendered to the Public Accounts Committee.
According to the witness, she was appointed by Ambrin to be the coordinator for the special audit team to audit 1MDB. The team was led by her superior Saadatul Nafisah.

Defence defers cross-examination of Ali Hamsa
1.36pm - The Kuala Lumpur High Court is allowing Najib Abdul Razak's defence team to defer cross-examination of former chief secretary Ali Hamsa.
This is due to both the prosecution and defence teams needing to finalise the transcript of an audio recording of what transpired in a meeting on Feb 24, 2016.
This meeting between Ali, then auditor general Ambrin Buang and then 1MDB CEO Arul Kanda Kandasamy among others, was where it was allegedly decided to make amendments to 1MDB's final audit report. 

Najib's lead defence counsel, Muhammad Shafee Abdullah seeks the deferment as the transcript needs to be finalised before the defence can prepare the questions for cross-examination.
Arul Kanda's lead counsel N Sivananthan agrees with the suggestion.
Lead DPP Gopal Sri Ram then informs the court that all parties will work together to come up with a final version of the transcript.
Earlier, Shafee had raised the issue that some parts of the current transcript has errors.
Judge Mohamed Zaini Mazlan agrees and allows Ali to be temporarily released from the witness stand.

Ali Hamsa proposed copies of 1MDB audit report to be shredded
1.28pm - Former chief secretary Ali Hamsa testifies that he suggested for the shredding of other copies of 1MDB audit report to ensure only one version exists.
The witness tells lead DPP Gopal Sri Ram this during examination-in-chief.
Sri Ram: You mentioned in the (audio) recording about the shredding of the document. What was the purpose of this suggestion?
Ali: Because of the conclusion at the end (of the Feb 24, 2016 meeting) there should not be two or three versions. Whatever final version agreed on should stand.
Sri Ram then concludes his examination-in-chief.
The court hears that the alleged decision to amend the 1MDB final audit report was made during a meeting involving then 1MDB CEO Arul Kanda Kandasamy, then auditor general Ambrin Buang, and Ali, among others, on Feb 24, 2016.

Playback of 1MDB meeting audio recording completed
1.25pm - The court wraps up the complete replay of the audio recording, which was allegedly made to amend the 1MDB audit report. 
12.29pm - Court resumes playback of an audio recording of the meeting linked to the alleged tampering of 1MDB final audit report in 2016.

12.02pm - Court calls for break
Audio recording stops as courts calls for a recess. 

11.35am - Jho Low-linked 'Good Star' raised in meeting 
Jho Low-linked firm Good Star Limited is raised in a meeting related to the 1MDB final audit report in 2016.
This is heard from the playback of an audio recording of the meeting, believed to be on Feb 24 that year, where a decision was made to remove certain controversial issues linked to the 1MDB final audit report.
The voice raising the issue is believed to be that of Saadatul Nafisah, who with then auditor-general Ambrin Buang, attended as representatives from the National Audit Department in the said meeting.

Another voice, believed to be Arul Kanda's (below), is heard explaining the matter in the audio recording.


11.06am - Heated argument heard in recording 
As the prosecution continues to play the audio recording, which has a total length of about one-hour and forty-five minutes, sounds of a heated argument could be heard in the audio of the purported meeting linked to alleged tampering of 1MDB audit report in 2016.
It seems that members of the quorum, including a woman believed to be National Audit Department officer Saadatul Nafisah, were debating each other.
However, it could not be ascertained what they were discussing specifically as the audio recording is unclear.
High Court judge Mohamed Zaini Mazlan and counsels in the trial are aided by a transcript of the recording, which was not made available to the media. 
Based on observation of highlighted portions of the transcript of the audio recording, shown on a somewhat partly clear playback screen in the High Court, the argument seems to be between then auditor-general Ambrin Buang and then 1MDB CEO Arul Kanda Kandasamy.

10.45am - Witness identifies voices of meeting quorum
The court continues listening to the audio recording purportedly of a meeting linked to the alleged 1MDB audit report tampering. 
Lead prosecutor Gopal Sri Ram at times pauses to ask the witness to identify the voices of those they are hearing.
The witness, former chief secretary to the government Ali Hamsa, so far identifies the voices of former auditor-general Ambrin Buang, National Audit Department officer Saadatul Nafisah, Mohd Isa Hussain (Treasury representative), and Shukry Mohd Salleh (former chief private secretary to Najib Razak).
According to Ali Hamsa's witness statement during yesterday's hearing, the meeting had purportedly took place on Feb 24, 2016.
Ali yesterday testified that he was the one who chaired the meeting and alleged that it was done on instructions of Najib who wanted coordination on the 1MDB audit report.

Ali Hamsa confirms it's his voice on audio recording
10.20am - Former chief secretary Ali Hamsa confirms it is his voice on an audio recording of a meeting linked to the alleged tampering of the 1MDB final audit when replying to a question by lead DPP Gopal Sri Ram.

Previously, the court heard that Ali and the then auditor-general Ambrin Buang (photo), as well as former 1MDB CEO Arul Kanda Kandasamy, attended a meeting on Feb 24, 2016, where a decision was made to remove four issues from the audit report.
Among the issues is the alleged attendance of wanted businessperson Low Taek Jho, also known as Jho Low, at a 1MDB board meeting linked to the delay in issuance of 1MDB's Islamic Medium Term Notes (IMTN).
The audio recording is stopped momentarily to allow Sri Ram to direct the question to Ali following which the audio recording is replayed.

Prosecution plays recording of meeting linked to audit report tampering
10.16am - Lead DPP Gopal Sri Ram tenders in High Court a pen drive purportedly containing an audio recording of a meeting linked to the alleged tampering of the 1MDB final audit report.
Sri Ram asks Ali Hamsa whether the witness has seen the pen drive containing the audio recording before.
Ali Hamsa answers he has not seen the pen drive before. The audio recording is then played out in court. 

Proceedings begin as Najib, Arul Kanda enter the dock
10.15am - Proceedings begin, with Najib Abdul Razak and Arul Kanda Kandasamy entering the dock.
10am - The two accused, former prime minister Najib Abdul Razak and former 1MDB CEO K Arul Kanda are seen in court waiting for proceedings to begin.
Also seen in court are Najib's lead defence counsel Muhammad Shafee Abdullah, Arul Kanda's lead counsel N Sivananthan, and lead DPP Gopal Sri Ram.

The third day of the 1MDB final audit report tampering trial of former prime minister Najib Abdul Razak and the sovereign wealth fund's former CEO, KArul Kanda Kandasamy, is set to see further explosive testimony from former chief secretary to the government Ali Hamsa.
Ali, who is listed as the fourth prosecution witness, was called to testify in the trial before the Kuala Lumpur High Court yesterday. 
He took the witness stand immediately after Companies Commission of Malaysia assistant registrar Muhamad Akmaludin Abdullah, the third prosecution witness, had wrapped up his testimony.
Ali's examination-in-chief by lead DPP Gopal Sri Ram delivered a heavy blow to the defence during the brief proceedings yesterday, with the witness testifying that Najib had allegedly ordered the said witness on Feb 22, 2016, to organise a meeting two days later to discuss amendments to the 1MDB audit report.
The former government servant also told the court yesterday that then attorney-general Abdul Gani Patail was sacked in 2015 due to his alleged meeting with then deputy prime minister Muhyiddin Yassin, among others.
In 2015, Muhyiddin was reported to have been expelled from the cabinet following his questioning of issues linked to the 1MDB scandal.
As proceedings before judge Mohamed Zaini Mazlan resumes around 10am this morning, Ali is set to continue being subjected to examination-in-chief by the prosecution.
Sri Ram is also today set to tender an audio recording of at least one of the alleged meetings linked to the purported tampering of the 1MDB final audit report. 
He had yesterday informed Zaini that the prosecution would try to tender the evidence in today's proceedings. - Mkini

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