Ex-1MDB chair testifies Najib didn't intimidate KPMG auditor

Summary

• 1MDB’s former chairperson Che Lodin Wok Kamaruddin denies that ex-premier Najib Abdul Razak intimidated KPMG managing partner Johan Idris to sign off on the sovereign wealth fund’s accounts by Dec 31, 2013.

• The defence witness testifies before the criminal court that Najib had instead made a formal request during a meeting at the accused's house at Langgak Duta.

• KPMG was later removed as 1MDB auditor and replaced with Deloitte.

1MDB TRIAL | Najib Abdul Razak did not intimidate KPMG managing partner Johan Idris to sign off on 1MDB’s accounts nearly 22 years ago, the sovereign wealth fund’s ex-chairperson testified.

Defence witness Che Lodin Wok Kamaruddin told the High Court in Putrajaya this afternoon that the ex-premier had only politely requested the auditor to sign off the fund’s accounts.

Lodin’s testimony went against Johan’s past testimony that the auditor felt intimidated by Najib during a meeting at the former finance minister’s house at Langgak Duta on Dec 31, 2013.

During examination-in-chief by Wan Azwan Aiman Wan Fakhruddin today, Lodin recounted what happened during the meeting he attended.

Aiman: What do you have to say about the claim that Najib instructed KPMG to sign off on 1MDB’s 2013 financial statements without crucial documents and subsequently terminated them for failing to comply?

Lodin: I disagree and the minutes are an accurate record of what was discussed as you can see from the minutes (prepared by Johan), prime minister Najib at that time, merely said he would like to see the accounts signed by Dec 31 2013, and to facilitate that process, he suggested KPMG to fly to Hong Kong to get the necessary comfort to complete the audit.

Aiman: What do you have to say about 14th prosecution witness Johan’s claim that Najib intimidated him when Najib said “he would like to see the accounts signed by Dec 31, 2013”?

Lodin: I viewed it as a polite request by Najib rather than intimidation and this is well reflected in the minutes by Johan.

During today’s RM2.27 billion 1MDB abuse of power and money laundering trial against Najib, Lodin’s oral evidence backs the accused’s own testimony denying ever pressuring Johan over the issue.

Lodin also testified that it was the decision of the 1MDB board to remove KPMG as auditor of the fund and replace it with another audit firm, Deloitte.

Prior to KPMG’s removal in December 2013, it did not budge over its refusal to sign off on 1MDB’s accounts.

Prima facie case

On Oct 30 last year, the criminal court ordered Najib to enter his defence over four abuses of power and 21 money laundering charges involving RM2.27 billion from 1MDB.

Judge Collin Lawrence Sequerah ruled that the prosecution succeeded in establishing a prima facie (answerable) case against Najib due to the strength of some 50 witness testimonies.

Between early December last year and late January this year, Najib spent 26 days on the witness stand trying to raise reasonable doubt in the prosecution’s case.

The accused contended that he had neither knowledge nor involvement in wrongdoing at 1MDB and that all embezzlement there was solely masterminded by fugitive businessperson Low Taek Jho (Jho Low) and members of its management.

The former Pekan MP also relied on the defence that he was given a donation promise by the late Saudi King monarch King Abdullah during a meeting between them in Riyadh in 2010.

The accused has been serving a six-year jail sentence since August 2022 over a separate graft case involving RM42 million from SRC International, a former subsidiary of 1MDB.

The sovereign wealth fund’s stated purpose was to ensure long-term sustainable development while safeguarding the economic well-being of Malaysians.

The Minister of Finance Incorporated (MOF Inc) fully owned both 1MDB and SRC.

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