Audit Dept asked to shred original 1MDB audit report after alterations

AUDIT TAMPERING TRIAL | The Kuala Lumpur High Court today heard how 1MDB executives and figures linked to then prime minister Najib Abdul Razak conspired to change the final copy of the 1MDB audit report and to have all versions of it, apart from their own, destroyed in 2016.

Testifying as the fifth prosecution witness, former chief secretary to the government Ali Hamsa said he chaired the February 24, 2016 meeting that included 1MDB CEO Arul Kanda, then Najib's chief private secretary Shukry Mohd Salleh, then Auditor-General Ambrin Buang, and former National Audit Department (NAD) officer Saadatul Nafisah.

At that time, the NAD had already printed 60 copies of the audit report. Six of the copies were distributed to Najib, Shukry, Arul, Ambrin, Ali and Attorney-General's Chambers officer Dzulkifli Ahmad on Feb 22, 2016.

Based on audio recording purportedly of the meeting that was played in court today, Ali was the one who made the suggestion that the original audit report should be shredded.

"Because the conclusion at the end (of the meeting) says there should not be two or three versions.

"Whatever was final version agreed, that should stand (as the only version)," Ali said, when asked by lead deputy public prosecutor Gopal Sri Ram on why he spoke about shredding documents during the meeting.

Ali (above) was the first high profile witness who was introduced by the prosecution at the criminal trial against Najib, who is accused of ordering the tampering of the audit report.

The politician had allegedly committed the act between Feb 22 and 26, 2016 at the Prime Minister’s Department in Putrajaya, which is an offence under Section 23(1) of the Malaysian Anti-Corruption Act 2009.

Also facing trial together with Najib is Arul, who is accused of abetting the former premier in committing the offence.

In the two hours and forty-five minute audio recording played in the Kuala Lumpur High Court this morning, the meeting seemed to indicate disagreements between Ambrin and Arul Kanda.

At several parts of the recording, Ambrin was heard raising his voice against Arul Kanda in regard to certain issues linked to the 1MDB final audit report.

Among these issues was the auditing of 1MDB, whereby the supporting documents needed for the audit were allegedly not provided.

Another issue that led to Ambrin’s raised voice against Arul Kanda (above) was in relation to whether there had been anything wrong in 1MDB engaging AmBank for a deal. This was not clearly indicated from the audio recording.

At one point in the meeting, Saadatul is heard questioning Arul Kanda over payment of money to Good Star Limited.

It was previously reported in a separate RM2.28 billion 1MDB trial against Najib, that US$330 million flowed from money meant for the joint venture between 1MDB and Petrosaudi International, to Good Star Limited.

In today’s trial, besides Ali who confirmed his voice as well as that of Ambrin’s voice on the recording, other voices heard were that of Saadatul Nafisah, who was then with the National Audit Department, as well as the voice of Arul Kanda.

During the discussion, attendees could be heard referring to multiple 1MDB-linked entities like wanted businessperson Jho Low-linked company Good Star Limited, Petrosaudi, the Public Accounts Committee (PAC), and AmBank, among others.

At the end of proceedings this afternoon, Najib Abdul Razak’s lead defence counsel Muhammad Shafee Abdullah (above) sought for cross-examination to be done on Ali at another date because parties need to sort out the issue of finalising the transcript for the audio recording.

Shafee told judge Mohamed Zaini Mazlan that the defence found many errors and incompleteness in the transcript being relied on by the prosecution.

Arul Kanda’s lead counsel N Sivananthan concurred with Shafee’s suggestion, saying that they wished to avoid a situation where Ali may dispute what was described in the transcript.

Sivananthan suggested that both the prosecution and defence teams work together to finalise the transcript of the audio recording, and hand the final version to DPP Ahmad Akram Gharib this Friday.

“Some of the comments attributable to certain persons (in the current unfinalised transcript) may be mixed up, there's a need to ascertain who said what.

“It is not disputed that my client (Arul Kanda) was at the meeting (Feb 24, 2016). Can get him to confirm who was at the meeting,” Sivananthan said as Arul Kanda looked on from the dock.

During the duration of the playback, the audio recording, which was contained in a pen drive which Ali earlier today testified he had not seen before, was unclear at certain parts and with some distortion in the voices in other parts.

Proceedings before Zaini resume at 10am tomorrow morning.

Najib was charged with ordering the tampering of the 1MDB final audit report in the Kuala Lumpur Sessions Court on Dec 12 last year.

Najib claimed trial to receiving gratification in the form of protection from ethical, civil or criminal actions against him as a public officer in relation to 1MDB, by ordering the alteration of the final audit report before it was presented to the Public Accounts Committee (PAC).

He was charged under Section 23(1) of the Malaysian Anti-Corruption Act 2009. Under Section 24 of the same Act, Najib stands to face a maximum of 20 years’ jail or a fine of not less than five times the sum or value of the gratification which is the subject matter of the offence, or RM10,000, whichever is higher, if convicted.

On the same day (Dec 12, 2018) before a separate Kuala Lumpur Sessions Court, Arul Kanda claimed trial to abetting Najib in committing the offence on the same day and time.

On Jan 4 this year, the Sessions Court allowed the prosecution’s application for the joint hearing of Najib's and Arul Kanda’s cases.

Then, on March 14 this year, the High Court in Kuala Lumpur allowed the duo’s case to be transferred to it from the lower court.

- Mkini