KUALA LUMPUR: Former 1MDB chairman Bakke Salleh told the High Court in the Najib Razak money laundering and power abuse trial he quit the company in October 2009 as a sign of protest.
He said he was unhappy because the management staff disobeyed instructions by him and other directors on the transfer of US$700 million into an unknown firm earlier the same year.
The court heard that 1MDB had in 2009 entered into a joint venture with PetroSaudi International Ltd (PSI), and that under the contract terms, 1MDB needed to fork out US$1 billion for the venture.
The US$1 billion was supposed to be deposited into the 1MDB-PSI joint venture account but only US$300 million was moved into this account.
It was later revealed that US$700 million was transferred to Good Star Ltd, a company controlled by fugitive businessman Low Taek Jho, or Jho Low.
“As chairman, I resigned as a sign of protest and I did not want to be involved in any discussions and decisions regarding 1MDB.
“I asked my secretary to deliver the (resignation) letter to the prime minister because if I were to send it myself, he would probably convince me to stay.
“I did not announce my resignation at that time to maintain his reputation,” Bakke said.
He told the court that fellow director Azlan Mohd Zainol also followed in his footsteps in quitting 1MDB.
“Azlan told me he would resign shortly after me so as to not offend or embarrass the prime minister and to prevent the PM from thinking that we did not want to help him in 1MDB,” Bakke said.
How Bakke came to TIA and 1MDB
Bakke said Jho Low had in 2008 offered him the chance to join Terengganu Investment Authority (TIA) as a director.
“Jho Low informed me that Tuanku (Terengganu ruler Sultan Mizan Zainal Abidin) was interested in setting up a sovereign wealth fund for Terengganu and to invest the oil royalty income received, similar to Mubadala in Abu Dhabi.
“I occasionally met Jho Low at Datuk Seri’s (Najib) defence ministry office as well as at the deputy prime minister’s office,” he said.
Bakke said he was the former Felda managing director and met Najib regularly to brief him on what was happening.
During those meetings, he said, Najib supported him and told him how he could contribute to TIA.
“When he (Najib) said that to me, I felt proud to be able to contribute and be involved in the formation of TIA,” he said.
Bakke said Najib was “already indirectly involved” with the formation of TIA as the appointment of company directors and senior management staff was carried out by the representative of the finance ministry together with Jho Low.
“The positions in TIA, like appointments of members to the board of directors and senior management, were managed by Jho Low, who was the coordinator representing the Palace and the prime minister,” he said.
Bakke told the court that he first tendered his resignation at TIA on April 7, 2009 after the state government said it was “not interested in proceeding with the investment in TIA”.
“Jho Low told me about it and he also said TIA would be taken over by the federal government.
“He (Jho Low) mentioned that the state government did not want to proceed with the investment because they did not agree that the oil royalty be used as collateral for the issuance of bonds.”
A few months later, in August 2009, he said he was reappointed as chairman as the federal government was in the midst of taking over TIA and changing its name to 1MDB.
“I was made to understand that Jho Low had resigned as 1MDB adviser at that time,” he said .
Bakke then resigned for the second time on Oct 19, 2009. - FMT
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