Witness: 1MDB chose to split US$1b, not BNM's call

1MDB TRIAL | The former chief executive officer of Deutsche Bank Malaysia Berhad (DBMB) told the Kuala Lumpur High Court today that the decision to split a US$1 billion remittance by 1MDB was a business decision made by the company, not something for Bank Negara Malaysia (BNM) to determine.

Raymond Yeoh Chen Seong, 62, said he called Wan Hanisah Wan Ibrahim from BNM’s Foreign Exchange Administration Department to seek clarification about the transaction, which involved sending money to a joint venture with Petrosaudi International Ltd (PSI).

“During the call, I explained the updated remittance instructions. Wan Hanisah responded that it was not for BNM to decide and that it was a business decision by 1MDB,” he said.

The call was made on a recorded line in DBMB’s dealing room, with DBMB Head of Global Markets Corporate Sales, Jacqueline Ho, also on the line.

Yeoh, who is testifying as the 22nd defence witness in Najib Abdul Razak’s trial involving the alleged misappropriation of RM2.3 billion from 1MDB, said the bank carried out the remittances after receiving verbal confirmation and instructions from the sovereign wealth fund.

Business decision

1MDB was represented by the company’s then CEO, Shahrol Azral Ibrahim Halmi and its former executive director of business development, Casey Tang Keng Chee.

He further said that, following the verbal confirmation from BNM and IMDB's instructions, DBMB effected the remittances as instructed.

He explained that the US$1 billion was sent in two parts, namely, US$700 million went to an account at RBS Coutts, which was later found to belong to Good Star Limited, a company owned by fugitive businessperson Low Taek Jho or Jho Low.

The remaining US$300 million was transferred to an account at JP Morgan.

On Oct 30 last year, Justice Collin Lawrence Sequerah ordered Najib to enter his defence after ruling that the prosecution had established a prima facie case against him.

Najib, 71, faces 25 charges, including four counts of abusing his position to accept RM2.3 billion in bribes from 1MDB funds and 21 charges of money laundering involving the same amount.

The hearing continues tomorrow.

- Bernama

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