KUALA LUMPUR, Dec 22 — Former auditor-general Tan Sri Madinah Mohamad testified today that she decided against destroying the original 1Malaysia Development Berhad (1MDB) audit report that contained material evidence of alleged wrongdoing in the firm.

Testifying against Datuk Seri Najib Razak and former 1MDB chief executive officer Arul Kanda Kandasamy in their joint trial for allegedly tampering the 1MDB audit report, Madinah said she was informed in March 16, 2017, by Datuk Nor Salwani Muhammad of the existence of two seperate 1MDB audit reports.

After she took office as the auditor-general in February 2017, Madinah said she called for a briefing by the 1MDB special audit team to gain a better understanding of the situation within the state investment firm.

Madinah said Salwani informed her on that day that she had saved the only original copy of the 1MDB original audit report.

"Before the audit report briefing, Nor Salwani had informed me that there are two versions of the 1MDB audit report. I was also given the original version of the 1MDB audit report and was informed by Nor Salwani the report is the only copy in her possession.

"There were 10 original copies of the report and four out of 10 that were not distributed were ordered by Tan Sri Ambrin Buang to be destroyed from NAD’s possession. The remaining six copies were already sent out to NAD’s mailing list.

"Nor Salwani had informed me that she had kept the original copy of the 1MDB audit report to get instructions from the new auditor general, which was me, whether or not to destroy this final report or otherwise as it contains material evidence on 1MDB.

"I then made a decision not to destroy this report as it contains material evidence on 1MDB,’’ she said.

Madinah also testified that she was informed by Nor Salwani that the 1MDB audit report was printed twice. The first being in early 2016 while the second time was on March 2, 2016.

Madinah said the original report that was presented to Najib’s then principal private secretary Tan Sri Shukry Mohd Salleh, was actually the audit final report that was meant to be presented to the Public Accounts Committee (PAC) on February 24, 2016.

"However the content of this report was then changed when a few paragraphs were dropped through a meeting that was chaired by then chief secretary to the government Tan Sri Ali Hamsa on February 24, 2016. I was also told by Nor Salwani that the PAC briefing that was scheduled on February 22, 2016 was changed to March 4, 2016,’’ said Madinah.

The February 24, 2016 meeting among stakeholders had taken place at Ali Hamsa’s office, where decisions were made to remove or change certain parts of the audit report, including omitting the existence of 1MBD’s two conflicting financial statements for 2014.

Prior to the February 24, 2016 meeting, Najib had called a meeting on February 22, 2016, with Ambrin, Ali and Shukry to discuss the findings of the 1MDB final report.

The February 24 meeting eventually resulted in the removal of four items in the report including 1MDB's two conflicting 2014 financial statements.

Following the change of the government following the 2018 general elections, Madinah stated that the NAD’s 1MDB special audit team was called for a briefing on May 31, 2018 by the Council of Eminent Persons chaired by Tan Sri Abu Talib Osman.

A copy of the original 1MDB audit report was given to the Council of Eminent Persons in May while a copy was given to the police and the Malaysian Anti-Corruption Commission, respectively, in August 2018.

Madinah also testified today that she had issued a press statement on August 30, 2018, informing the public on the two versions of the 1MDB audit report.

In this trial, Najib was charged with abusing his position as prime minister and finance minister to order amendments in February 2016 to the auditor-general’s audit report on 1MDB before its finalisation and presentation to the PAC to avoid any civil or criminal action against him, while Arul Kanda was charged with abetting Najib in the report’s tampering.