I was never invited to any meetings - former 1MDB board member
Sidek also testified that during his appointment to BOA for six years since late 2010, he was never invited to any meetings to discuss issues related to the Malaysian sovereign wealth fund...
Najib Abdul Razak appointed Mohd Sidek Hassan as a member of 1MDB’s board of advisors (BOA) as the then premier thought the latter’s salary as then chief secretary to the government (KSN) was too low, the Kuala Lumpur High Court heard.
Sidek also testified that during his appointment to BOA for six years since late 2010, he was never invited to any meetings to discuss issues related to the Malaysian sovereign wealth fund.
The 19th prosecution witness was testifying during today’s RM2.28 billion 1MDB corruption trial against Najib, the former finance minister.
As the accused looked on from the dock, Sidek (above) testified that he was informed of his appointment to 1MDB BOA with immediate effect via a letter from Najib dated Aug 30, 2010.
The former civil servant said, via a letter from 1MDB on that same date, that he was informed he would be getting a monthly advisory fee of RM30,000 for his post in BOA that took effect from July 1, 2010. Najib was also the chairperson of the BOA then.
Sidek said following his retirement from being chief secretary to the government on June 23, 2012, 1MDB still maintained him on the BOA with a reduced monthly fee of RM10,000 taking effect from January 2013.
The witness said however that he stopped receiving the fee in June 2015, following his appointment as then Petronas chairperson.
“I wish to state that when Najib was prime minister, he once asked me about my salary as KSN and he thought my salary as KSN was too little.
“Therefore, I regarded my appointment into 1MDB was to increase my salary as KSN which was regarded by Najib as commensurate,” Sidek testified.
The witness added that he duly reported his BOA income to the Inland Revenue Board (IRB).
According to previous news reports from 2013, KSN earned more than RM23,000 a month.
No briefing or discussion
During proceedings before trial judge Collin Lawrence Sequerah, Sidek stressed however that during his tenure in BOA, nobody from 1MDB ever gave him a briefing or discussion about issues, matters of investment and company operation related to the fund.
The witness said he came across media reports about the alleged embezzlement of funds out of 1MDB and that the MACC was investigating the issue.
“However, I was never given a briefing or told more about the details of this probe on 1MDB. I confirm that Najib as then prime minister never explained to me issues in 1MDB despite my appointment on the 1MDB BOA.
“I also never asked Najib about why no board of advisor meetings were ever held during my tenure (as BOA). I also never received any reports from anybody in 1MDB about the operation and investments made by 1MDB.
“I also wish to state here that I never asked Najib or anybody from 1MDB about the problems within 1MDB as from my understanding, 1MDB was established to be used as political funding to the then ruling party, namely BN,” the witness claimed.
Back in January last year, former 1MDB CEO Mohd Hazem Abdul Rahman testified that the fund was set up to funnel money to companies linked to Umno, which is part of BN.
Proceedings before Sequerah will resume this afternoon.
Najib 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 businessperson Low Taek Jho (Jho 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.
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