1MDB Trial | Bank Negara Malaysia (BNM) in 2014 denied permission for 1MDB linked to a ‘grand scheme’ to borrow RM4.9 billion from offshore sources in 2014, the Malaysian central bank’s former governor testified.
Zeti Akhtar Aziz told the Kuala Lumpur High Court this during the RM2.28 billion 1MDB corruption trial against former prime minister Najib Abdul Razak.
During cross-examination by lead defence counsel Muhammad Shafee Abdullah, the 46th prosecution witness said BNM put a stop to the ‘grand scheme’, following its increasing suspicion over the manner of transactions going out of Malaysia by the troubled sovereign wealth fund.
Shafee: On the 2014 attempt (by 1MDB) to get approval from BNM, what was that for?
Zeti: That was for (1MDB to) loan in ringgit from offshore sources; it was US$259 million, but the total amount equivalent was RM4.9 billion.
Zeti testified that after more information was obtained from overseas regulators, the witness recalled that 1MDB officers made representation to BNM that the fund needed to borrow this amount to recoup existing debt.
The former central bank governor noted that the 1MDB officers were unable to provide sufficient explanation on the nature of the fund’s prior US$1 billion investment in a joint venture with Saudi Arabia’s Petrosaudi International Limited (PSI).
“In 2014, 1MDB actually tried to take on foreign debt again and had to make an application to BNM on June 3, 2014; this was even before we received information from foreign authorities, and we rejected this application, so it put a stop to this grand scheme,” she said.
Zeti said that following BNM’s refusal to grant approval to borrow massive amounts of foreign money, 1MDB then appealed to the central bank, in which she reiterated that BNM dismissed the appeal.
She explained that BNM’s refusal in 2014 was because the Malaysian sovereign wealth fund had already incurred a high level of debt since 2009, which posed a problem to the country.
She also recalled that one of the 1MDB officials even remarked that the fund would instead seek permission from the Securities Commission to raise the equivalent of RM4.9 billion.
The trial before judge Collin Lawrence Sequerah resumes tomorrow as well as Friday this week.
Former finance minister Najib is facing four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion from 1MDB, a sovereign wealth fund wholly owned by the Minister of Finance Incorporated (MOF Inc).
For the four abuse of power charges, the former Pekan MP is alleged to have committed the offences at AmIslamic Bank Bhd’s Jalan Raja Chulan branch in Bukit Ceylon, Kuala Lumpur, between Feb 24, 2011, and Dec 19, 2014.
On the 21 money laundering counts, the accused is purported to have committed the offences at the same bank between March 22, 2013, and Aug 30, 2013. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.