Najib told me not to interfere in 1MDB: Ex-finance minister II
The 20th prosecution witness told the Kuala Lumpur High Court that he tried to advise the former finance minister from getting 1MDB involved in an investment with Petrosaudi International Limited (PSI).
However, the former Tambun MP claimed...
Former finance minister II Ahmad Husni Mohamad Hanadzlah testified today that he tried to warn former prime minister Najib Abdul Razak against setting up 1MDB without a feasibility study.
The 20th prosecution witness told the Kuala Lumpur High Court that he tried to advise the former finance minister from getting 1MDB involved in an investment with Petrosaudi International Limited (PSI).
However, the former Tambun MP claimed that Najib did not heed his advice.
“I stated that ‘1MDB has no experience in the field and it ought to just be given to (national oil company) Petronas’.
“But the PM responded to me with ‘Husni, I don’t want you to get involved and interfere with 1MDB’.
“After the PM responded like that to me, I did not reply anymore. I confirm that the meeting between me and the PM was at the PM’s office and since that time, I did not at all get involved in any decision or be informed about investments relating to 1MDB,” Husni testified about the alleged 2009 meeting during the RM2.28 billion 1MDB corruption trial against Najib this afternoon.
Previously, during the separate trial of the RM42 million SRC International corruption case against Najib on Aug 19, 2019, Husni as the prosecution witness there also testified that Najib told him not to get involved in 1MDB. (SRC was a former subsidiary of 1MDB).
The witness also testified today that in 2009 (he does not remember the specific date), following the federal government’s decision to take over the Terengganu Investment Authority (TIA, the predecessor of 1MDB) from the Terengganu Menteri Besar Incorporated, he had gone to meet then-premier Najib to talk about the importance of a feasibility study.
Husni said he told the accused that a feasibility study is important as it would assess a potential project for any business and financial risks which is important in ensuring a government-linked company makes money for the federal government.
The witness, however, claimed that Najib’s only response to this was “dia akan teruskan” (meaning the federal government acquisition of TIA would continue) and that Husni stopped trying to comment on this.
Then later in 2009, Husni claimed that he heard from Finance Ministry officers that 1MDB would sign a joint venture (JV) with PSI.
It was reported that US$700 million of 1MDB’s funds meant for the JV was diverted to Good Star Limited, an entity allegedly controlled by businessperson Low Taek Jho (Jho Low).
Husni also testified today that when he met Najib again to advise against the JV, the then-premier told him off against being involved and interfering in the affairs of the fund.
The witness claimed that since that time, he was kept out of the loop of the various financial and investment decisions at 1MDB.
Husni, however, claimed that on Aug 23, 2010, he again wrote a letter to Najib voicing concerns about the way that the sovereign wealth fund was managed such that it could “trigger controversy and jeopardise the government and the prime minister”.
“However, after issuing the letter, I did not receive any response from Najib regarding my concerns.
“I felt that as MK II (finance minister II), I had taken responsibility to raise the 1MDB issue,” Husni said.
The witness claimed that in early 2015, Najib had called him to help resolve 1MDB’S ballooning debt problem of RM49.895 billion, whereby he claimed to have raised a disagreement with being saddled with the task.
Husni alleged that Najib persisted in wanting him to resolve the fund’s debt issue, and the former then tried to get the then-minister in the Prime Minister’s Department Wahid Omar to take over the task, but Wahid did not wish to.
The witness said after that, he and his then-chief private secretary Imran Yasin Mohd Yusof together crafted the 1MDB Rationalization Plan.
Husni said that in 2015, the cabinet agreed with the plan for monetisation liquidation of all assets of 1MDB, except for those involving the 30 percent of the equity in Edra, 40 percent in TRX and 40 percent in Bandar Malaysia, resulting in a decrease of debts to RM5.3 billion.
The cabinet directed for the rationalisation plan to be carried out by 1MDB.
‘Arab donation’
Meanwhile, during his tenure as finance minister II between April 2009 and June 2016, Husni testified that he found out via an MACC statement in 2015 about the issue of the RM2.6 billion that flowed into Najib’s bank account.
The witness said he went to meet Najib at the then premier’s office, to which Najib claimed it was a donation from Arab royalty.
Husni said he was later met by Najib’s media officer asking to help him (Husni, as then Umno treasurer) to prepare a media statement on the issue.
Husni added that he then went to meet Najib and ask the then Umno president to just tell him (Husni) about the details of the donation so that the matter could be resolved.
“However, my suggestion was not carried out and the details of the RM2.6 billion transaction were not shared with me, to the extent that I resigned,” the witness said.
The trial before judge Collin Lawrence Sequerah will resume tomorrow.
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.
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