1MDB audit: Najib, ex-CEO to know on Friday if they need to enter defence

Former prime minister Najib Abdul Razak and 1MDB’s former CEO Arul Kanda Kandasamy will know tomorrow if they need to enter their defence in an audit case involving the sovereign wealth fund.

The Kuala Lumpur High Court has set March 3 to deliver its decision on whether the prosecution succeeded in establishing a prima facie case against the duo over alleged abuse of power.

Trial judge Mohamed Zaini Mazlan was initially fixed to deliver the decision on Jan 30 but it was postponed to this Friday.

Najib, also a former finance minister, was charged with using his position as then-prime minister to order amendments to 1MDB’s final audit report before it was presented to the Public Accounts Committee (PAC) in 2016 to prevent any action against him.

Arul was charged with abetting Najib in making the amendments.

The criminal charges were framed under Section 23 (1) of the MACC Act 2009, which specifies a jail term of up to 20 years and a fine of no less than five times the amount of gratification, or RM10,000, whichever is higher.

On Sept 7 last year, the prosecution rested its case against the duo after calling 16 witnesses, including Arul, to testify in the trial that spanned 43 days.

Previously, the prosecution was allowed to call Arul to testify against Najib.

Zaini will decide at the end of the prosecution’s case and on examining the strength of his testimony, whether co-accused Arul should be ordered to enter his defence, be granted full acquittal or be granted a discharge not amounting to an acquittal (DNAA).

Unlike a full acquittal, a DNAA merely amounts to an accused being released from the criminal charge with the possibility of being recharged for the same offence in future if the prosecution wishes to do so.

Other witnesses

Since the trial began on Nov 18, 2019, others who took the witness stand for the prosecution were former chief secretary to the government Ali Hamsa, former auditor-generals Ambrin Buang and Madinah Mohamad, National Audit Department officer Nor Salwani Muhammad and Najib’s former principal private secretary Shukry Mohd Salleh.

Salwani previously testified that she saved a copy of the original 1MDB audit report from being destroyed before the alleged modifications took effect on the report that was to be tabled before the PAC in 2016.

The prosecution contended that following a meeting on Feb 24, 2016, a decision was made to remove or alter certain portions of the 1MDB audit report, including dropping the presence of fugitive businessperson and key figure Low Taek Jho (Jho Low) at the board meetings of 1MDB.

Another issue that was allegedly dropped from the audit report was two conflicting 2014 financial statements of the sovereign wealth fund.

Besides Arul and Ali, others who were present at the meeting were Ambrin, former National Audit Department officer Saadatul Nafisah Bashir Ahmad, Shukry, and then Attorney-General’s Chambers representative Dzulkifli Ahmad.

Najib is serving a 12-year jail sentence over the RM42 million SRC International corruption case. SRC used to be a subsidiary of 1MDB.

SRC later became wholly owned by the Minister of Finance Incorporated (MOF Inc), which also wholly owned 1MDB.

Najib used to be adviser emeritus to SRC and chairperson of 1MDB’s board of advisers as well.

However, after having exhausted the appeals process at the Court of Appeal and Federal Court, Najib has resorted to a review application to nullify the guilty verdict and sentencing in the SRC International case, with the apex court set to deliver its decision on the bid by March 31.

The former Pekan MP also has three other pending criminal court cases, namely the RM2.28 billion 1MDB corruption trial, a separate SRC International money laundering case involving RM27 million, and an RM6.6 billion International Petroleum Investment Company (IPIC) criminal breach of trust case.

Former Treasury secretary-general Mohd Irwan Serigar Abdullah is a co-accused in the IPIC case.

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