1MDB officials reported directly to Najib, not MoF, court told

 

1MDB’s memorandum and articles of association gave the prime minister ‘ultimate power’ to approve such matters as appointments and investments, says Siti Zauyah Mohd Desa. (Bernama pic)

KUALA LUMPUR: A former senior Treasury officer told the High Court in Najib Razak’s 1MDB trial the company officials reported their operations directly to the then prime minister.

Siti Zauyah Mohd Desa, who was the Treasury’s deputy secretary-general, said the finance ministry’s unit, Minister of Finance Incorporated (MoF Inc), had specific guidelines for companies under its control, where they needed to obtain approval from the ministry before they could proceed with any investment.

However, in 1MDB’s case, she said, the company’s matters were reported directly to Najib, who was also the finance minister.

Siti Zauyah also said the Treasury was “unclear” about the purpose of 1MDB’s joint venture with PetroSaudi International Limited (PSI).

“My department (MoF Inc) was not consulted by 1MDB before they entered into this joint venture. I don’t know if 1MDB received approval directly from the (then) prime minister,” she said.

She said she had tried to search online for PSI’s background but could not find anything.

To a question from deputy public prosecutor Nadia Mohd Izhar on what she did next, Siti Zauyah said she informed then second finance minister Ahmad Husni Hanadzlah that they had no other avenues to obtain information on PSI.

She also told the court the 1MDB management, led by former CEO Shahrol Azral Ibrahim Halmi, was uncooperative to the Treasury.

“We called him for meetings but the appointments were always cancelled at the 11th hour.

“I would like to stress (that) MoF Inc cannot close down companies or change their status as government-owned companies if they cannot fulfill their financial obligations.

“The government guaranteed a RM5 billion bond issued by 1MDB for 30 years and we must ensure that they continue their operations and fulfill their obligations,” she said.

Siti Zauyah also told the court she did not understand how some provisions were included in 1MDB’s memorandum and articles of association (M&A) that gave the prime minister “ultimate power” to approve company matters related to appointments, investments and other matters of national interest.

“Articles 68, 93 and 117 under 1MDB’s M&A were never found in other government-owned companies,” she said.

Najib is standing trial for 25 charges of abuse of power and money laundering over alleged 1MDB funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014.

The hearing before High Court judge Collin Lawrence Sequerah continues. - FMT