Cabinet discussed using 1MDB funds for constituencies, says ex-chief sec

 

Sidek Hassan had told the court he understood that 1MDB was set up to raise funds for Barisan Nasional. (Bernama pic)

KUALA LUMPUR: Former prime minister Najib Razak’s Cabinet had talked about the “use of 1MDB funds” to finance projects in ministers’ parliamentary constituencies, the High Court was told today in Najib’s 1MDB trial.

Sidek Hassan, the chief secretary to the government from September 2006 to June 2012, said this when asked by adhoc prosecutor Gopal Sri Ram about his “impression” that 1MDB was set up to raise political funds for Barisan Nasional.

“In one of the Cabinet meetings, the matter of 1MDB funds was brought up. Ministers were encouraged to give proposals on how the funds could be used in their constituencies,” Sidek said.

Sri Ram then asked how the witness was able to link 1MDB with these ministers.

“Well they (ministers) are BN members,” Sidek said.

Yesterday, in his testimony, Sidek said he understood that 1MDB was set up to raise funds for the BN government and said he never asked Najib about the company’s problems.

Sri Ram then asked Sidek if the Cabinet should be focusing on their policy-making duties rather than talking about party politics during their weekly meeting.

In response, Sidek said: “You cannot differentiate between the two (policymakers and political parties).

“Government policies come from the political parties or coalition that is in power, whether it was BN or anyone else.”

Asked by Najib’s lawyer, Shafee Abdullah, on the tabling of Cabinet papers to approve a RM5 billion guarantee to Terengganu Investment Authority (TIA), Sidek said none of the ministers objected to this when Najib presented the papers in a meeting on April 1, 2009.

He agreed with Shafee that Najib had made a remark during the meeting, to caution the Cabinet on the financial implication of the RM5 billion guarantee.

Shafee: When the prime minister (Najib) was briefing about TIA, it was done in his official capacity as finance minister and there was no inkling of private interest?

Sidek: Correct.

Shafee then asked about Sidek’s appointment as one of the members of 1MDB’s board of advisers.

Sidek said Najib thought his salary as chief secretary was low, adding that “the prime minister thought I should be compensated in the goodness of his heart”.

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

The hearing before judge Collin Lawrence Sequerah continues. - FMT