1MDB TRIAL | The board of directors of 1MDB was involved in a ‘sandiwara’ (charade) to keep from official record that the sovereign wealth fund’s overseas funds belonged to Umno, claimed former CEO.
Mohd Hazem Abdul Rahman testified this during today’s RM2.28 billion 1MDB corruption trial involving former prime minister Najib Abdul Razak at the Kuala Lumpur High Court.
The 10th prosecution’s answer came during cross-examination by defence counsel Wan Aizuddin Wan Mohammed on attempts to repatriate 1MDB funds which were purportedly invested overseas in 2014.
Aizuddin’s line of questioning was on why Hazem did not put on record, during a 1MDB board meeting on Feb 27, 2014, that the funds overseas supposedly belonged to Umno. The witness testified that he attended the meeting as well.
The prosecution contends that billions of ringgit of 1MDB funds were funnelled out overseas in a convoluted money trail involving multiple entities, before billions of ringgit allegedly ended up in Najib’s bank account.
Also included in this alleged monetary trail was the US$3 billion of bonds issued by 1MDB’s subsidiary, 1MDB Global Investments Limited (1MDB-GIL) in 2013.
On Sept 14 last year during trial, Hazem (above) claimed that 1MDB was set up to help fund Umno. The witness claimed this was told to him by 1MDB-linked fugitive Low Taek Jho, or Jho Low.
On Jan 6 this year, Hazem claimed that Low also told him that 1MDB was established to funnel money to companies linked to Umno. Incidentally, Najib also used to be the president of the political party.
During proceedings before judge Collin Lawrence Sequerah, Hazem contended that every member of the 1MDB board was involved in the alleged scheme.
Aizuddin: Is there a reason for you saying everyone on the board knew the real purpose of the money?
Hazem: Yes
Aizuddin: Why not put it on record (in 1MDB board meeting minutes) that these funds overseas belong to Umno?
Hazem: This is a scheme, it is not supposed to be put on record.
Aizuddin: You claim this is a conspiracy that all the board members participated in?
Hazem: Yes.
Aizuddin: You are saying that whatever was reported in the minutes are just for show?
Hazem: They knew what was at stake.
Aizuddin: Their (1MDB board) direction to management (of which Hazem as then CEO was a part of) to liquidate and bring back the funds, it was all a sandiwara?
Hazem: Yes.
When the lawyer asked whether Hazem was playing along with the machinations of Low, the witness claimed that he thought the scheme involved both the still-at-large fugitive (Low) as well as Najib.
However, the witness agreed with Aizuddin’s contention that the former never heard directly from Najib himself that the 1MDB funds overseas actually belonged to Umno.
Aizuddin: You never heard from my client’s mouth that the (1MDB) money overseas actually belonged to Umno?
Hazem: No (in agreement).
Aizuddin: The basis for your belief (that the 1MDB funds overseas belonged to Umno) was based on what Jho Low told you?
Hazem: It was based on what (was told to Hazem by) Jho Low and Azlin (Alias, who was the late principal private secretary to Najib).
During the grilling, Hazem also conceded that part of the overseas funds that was successfully brought back, was credited into 1MDB’s bank account and not that of Umno’s.
The hearing will resume in the afternoon and is expected to also continue on Tuesday next week.
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.
Besides being the former prime minister, the accused also used to be the finance minister and chairperson of 1MDB’s board of advisers.
1MDB is fully owned by the Minister of Finance Incorporated (MOF Inc). - Mkini
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