Auditor-general not intimidated into altering 1MDB audit report - witness

AUDIT TAMPERING TRIAL | Former chief secretary to the government Ali Hamsa maintained that then auditor-general Ambrin Buang was not pressured or intimidated into altering the National Audit Department's (NAD) on 1MDB.

Testifying at former prime minister Najib Abdul Razak's 1MDB audit report tampering trial, Ali said the Feb 24, 2016 meeting at his office in Putrajaya with the NAD, 1MDB and representatives from various agencies was cordial.

He told the court that Ambrin (above) and the NAD officers were not under pressure at the meeting.

The meeting was called after Najib expressed unhappiness at the draft of NAD's audit report on 1MDB.

Ali, while being cross-examined by lead prosecutor Muhammad Shafee Abdullah, said among the issues discussed was a request for the NAD to drop the fact that 1MDB had two different financial statements for the same year.

The NAD eventually agreed to drop this after being given assurance that there would be a police investigation into the matter.

Shafee: Did anybody pressure the auditor to drop this or intimidate them?

Ali: No pressure or intimidation. It is all up to the auditor.

Shafee: They accepted a resolution that a police report would be taken to punish those responsible?

Ali: Yes.

Ali (photo) said he did not get the feeling that Amrin and the NAD officers were under pressure.

However, Ali said the last update he received was no police report was lodged nor was he aware if anyone in 1MDB charged for creating two different financial statements.

Other details eventually omitted from the final 1MDB audit report include businessperson Low Taek Jho's presence at a board meeting when 1MDB was still the Terengganu Investment Authority (TIA) in 2009. 

Also omitted from the final audit report were details about the agreement between Country Groups Securities Thailand and Acme Time Limited and the delay in the Islamic Medium Term Notes (IMTN) issuance by 1MDB.

Shafee: All these four were agreed (to be removed from the report) by the NAD?

Ali: Yes.

Shafee: Did you or (then 1MDB CEO) Arul Kanda (Kandasamy) or anyone from the Prime Minister's Office or Finance Ministry threaten Ambrin to amend the audit report on 1MDB?

Ali: There was no threat.

Shafee: Have you ever pressured Ambrin to amend the 1MDB audit report?

Ali: I did not pressure.

Ali said he did not get the feeling that NAD officers were under pressure.

Shafee also asked about Ali's testimony in which he had previously described that Arul Kanda had pressed (mendesak)) the NAD about certain contents in its audit report.

On this, Ali said: "Knowing his (Arul Kanda) character, he talks softly. He mendesak in a good way".

Ambrin had previously testified that the NAD was pressured during the meeting into removing certain parts from its audit report on 1MDB. 

"The meeting (on Feb 24) pressured the NAD to consider hearing or accepting the feedback given by the 1MDB management even though a long period of time was already given to them to do so," he had said.

Meanwhile, during the proceedings before Kuala Lumpur High Court judge Mohamed Zaini Mazlan this morning, Ali agreed with Shafee that it was the prerogative of then prime minister Najib to appoint Dzulkifli Ahmad as the then MACC chief commissioner.

Dzulkifli, who was then a senior DPP from the Attorney-General’s Chambers, was present during the meeting on Feb 24, 2016.

Shafee was referring to previous questions by the prosecution to Ali during examination-in-chief in regards to Dzulkifli being appointed to head MACC after the meeting.

During the cross-examination, Shafee made reference to the appointment of Latheefa Koya as the MACC chief commissioner and Tommy Thomas as the attorney-general during the PH administration helmed by then premier Dr Mahathir Mohamad.

Shafee said these kind of appointments are all the prerogative of the prime minister, to which Ali agreed.

“It is the prime minister’s prerogative, you cannot question that,” Shafee said, to which Ali agreed.

The trial today then adjourned around 1.15pm as Shafee has an important meeting to attend to in the afternoon.

The proceedings before Zaini will resume around 9.30am tomorrow morning.

Najib is charged with using his position to order amendments to the 1MDB final audit report before it was presented to the Public Accounts Committee to avoid any action being taken against him.

Former 1MDB president and CEO K Arul Kanda is charged with abetting Najib in making the amendments to the report.

Both of them were charged under Section 23 (1) of the MACC Act 2009, which specifies a jail term not exceeding 20 years, and a fine of no less than five times the amount of gratification or RM10,000, whichever is higher, on conviction. - Mkini