Four issues dropped, other red flags retained in 1MDB audit report, court hears

Despite four allegedly controversial issues being dropped from the 1MDB audit report, it retained other red flags, the Kuala Lumpur High Court heard today.

Former National Audit Department (NAD) director Saadatul Nafisah Bashir Ahmad testified this during the 1MDB audit report tampering trial of former premier Najib Abdul Razak and former 1MDB CEO Arul Kanda Kandasamy.

During cross-examination by Najib’s lead defence counsel Muhammad Shafee Abdullah, seventh prosecution witness Saadatul agreed with the defence’s contention on what she had testified before a parliamentary Public Accounts Committee (PAC) hearing in Dec 2018.

She was referring to her answers to questions raised by members of the PAC then on the 1MDB audit report.

During the PAC hearing, she testified about the crucial meeting on Feb 24, 2016, which led to a decision to remove four potentially controversial issues from the 1MDB audit report.

Among the four issues were 1MDB’s two conflicting financial statements for 2014.

Shafee: You agree that in this answer (to the PAC), you said that the (1MDB audit) report had many red flags on 1MDB.

Saadatul: Yes.

Shafee: Nobody asked you to remove all the red flags on 1MDB, correct? I suggest that it still had red flags in the final version as nobody asked you to remove all. It was an honest report on 1MDB.

Saadatul: Yes. What we removed (are the four issues from 1MDB report).

Shafee: You only removed when there is justification (regarding the four issues). You do not simply remove?

Saadatul: Yes.

Shafee: There were still plenty of (other) red flags in the (1MDB) final report?

Saadatul: Yes.

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

Co-accused 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.

[More to follow] - Mkini