Ex-finance minister II didn’t want to get involved in 1MDB, court hears

Former finance minister II Ahmad Husni Mohamad Hanadzlah refused to get involved in 1MDB, a witness testified today.

Siti Zauyah Md Desa, a former finance ministry officer, told the Kuala Lumpur High Court that then treasury secretary-general Mohd Irwan Serigar Abdullah also told her not to proceed with an issue regarding Article 117 of 1MDB’s memorandum and articles of association (M&A).

The 26th prosecution witness, who used to be part of the ministry’s loan management division, was giving oral evidence during the RM2.28 billion 1MDB corruption trial against the former prime minister and finance minister, Najib Abdul Razak.

As the accused looked on from the dock, Siti Zauyah claimed that she met these high-level rebuffs to her attempt to escalate the issue of the 1MDB M&A amendment to insert Article 117 into the Minister of Finance Incorporated (MOF Inc) owned company.

Article 117 provides that 1MDB matters, such as the appointment of directors, senior management team members and other financial matters, require the authorisation of Najib.

Back in earlier proceedings on Nov 11 last year, former 1MDB chief financial officer Azmi Tahir testified that he followed the instructions of businessperson Low Taek Jho (Jho Low) in regard to the Malaysian sovereign wealth fund’s investments as Najib was the “ultimate power” over the fund.

Azmi claimed that he was introduced to Low as an alleged advisor to 1MDB, referring to Article 117 of the fund’s M&A.

Back on June 7 during the 1MDB trial, Husni (above) testified claiming that Najib told him “Husni, I don’t want you to get involved and interfere with 1MDB”.

Husni claimed Najib told him this after he tried to warn the latter about setting up 1MDB without a proper feasibility study, among other concerns.

Former 1MDB chief financial officer Azmi Tahir

During cross-examination today by lead defence counsel Muhammad Shafee Abdullah, Siti Zauyah testified that back in 2009 during the early days of 1MDB, she tried to escalate the issue of Article 117 to Husni and Irwan.

She claimed that it was because other MOF Inc-owned companies do not have this kind of provision in their own M&As.

“I discussed (about concerns regarding Article 117) with the then treasury secretary-general Irwan and he told me not to do anything,” she said before trial judge Collin Lawrence Sequerah.

Terengganu Investment Authority

Siti Zauyah testified that she then tried to raise the matter with Husni, who she claimed had said that he wished to avoid involvement with 1MDB.

Shafee: You know the matter went up to him (Husni)?

Siti Zauyah: He did not want to get involved.

Shafee: He told this straight to you he did not want to get involved in 1MDB?

Siri Zauyah: Yes.

Former prime minister Najib Abdul Razak.

However, when Shafee confronted her with the prosecution’s copy of a document showing Husni’s signature authorising the transfer of Terengganu Investment Authority’s (TIA) M&A to that of 1MDB, she testified she never saw the document.

TIA was a Terengganu-owned state investment firm. However, the federal government acquired it in 2009 and later that year renamed it 1MDB.

According to Shafee, the document dated Aug 11, 2009 is in relation to the adoption of TIA’s M&A to that of 1MDB, with slight alterations.

The trial before Sequerah will resume this afternoon.

Najib, who is also Pekan MP, is on trial for four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of 1MDB’s funds.

The prosecution contended that the wrongdoing at 1MDB was done by Low with the blessing of Najib.

The defence team however claimed the accused had no knowledge of wrongdoing and that the whole embezzlement scheme was solely masterminded by Low and several members of the fund’s management team. - Mkini