Najib may have wanted to withhold RM5b TIA bond: Ex-director

A former 1MDB director testified today that he might have been mistaken over whether Najib Abdul Razak wanted to proceed with a controversial RM5 billion bond.

Ismee Ismail (above) said this during his cross-examination by defence counsel Hariharan Tara Singh.

During this afternoon's RM2.28 billion 1MDB corruption trial against Najib, the 13th prosecution witness said his assumptions about the former prime minister might have been wrong.

Ismee's answer came after Hariharan showed in court a purported letter from the palace dated May 28, 2009.

The letter purportedly stated that Najib had agreed to postpone the issuance of a RM5 billion Islamic medium-term note (IMTN) by the Terengganu Investment Authority (TIA), pending due diligence on the matter.

Formed in February 2009, TIA was owned by Menteri Besar Incorporated, with Terengganu ruler and then Agong Sultan Mizan Zainal Abidin as the majority owner.

TIA was later transferred to the federal government via the Minister of Finance Incorporated in July 2009 and renamed as 1MDB.

In past proceedings before trial judge Collin Lawrence Sequerah, Ismee testified that on May 22, 2009, Najib had questioned why Ismee and TIA's then CEO Shahrol Azral Ibrahim Halmi agreed to put off the issuance of the RM5 billion IMTN.

In previous proceedings before the Kuala Lumpur High Court, ninth prosecution witness Shahrol testified about trouble with the palace, with Sultan Mizan wanting the IMTN issuance to be postponed. However, the bond issuance proceeded regardless.

Shahrol also previously testified that companies related to 1MDB-linked businessperson Low Taek Jho, also known as Jho Low, bought the bonds and made RM74 million 'out of thin air' by flipping them.

Hariharan: In light of the letter I showed you, do you agree that you or (then 1MDB CEO) Shahrol may have been wrong?

Ismee: Perhaps my assumption may have been wrong.

The trial before Sequerah is set to resume on Monday.

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 a former premier, Najib also used to be finance minister and chairperson of 1MDB's board of advisors. - Mkini