KUALA LUMPUR, Jan 24 — Former prime minister Datuk Seri Najib Razak did not allow 1Malaysia Development Berhad (1MDB) to bring back its US$2.7 billion funds back from abroad, a Malaysian Anti-Corruption Commission (MACC) investigator testified in the High Court today.
Senior Superintendent Nur Aida Arifin, the 49th prosecution witness in Najib's trial over the misappropriation of over RM2 billion of 1MDB funds, also testified that Low Taek Jho – previously described as Najib's proxy for 1MDB matters and now a fugitive – had claimed the money was for Umno to use in the elections.
She added that US$681 million of the funds was eventually transferred through several entities before ending up in Najib's personal bank account.
Nur Aida was referring to a US$3 billion bond issued by 1MDB's subsidiary 1MDB Global Investments Limited (1MDB GIL) in March 2013, with 1MDB GIL on March 19, 2013 receiving only US$2.721 billion after deducting fees for the bond's underwriter Goldman Sachs.
The US$2.721 billion was deposited into 1MDB GIL's BSI bank account, with this account opened just days earlier on March 11, 2013 and with its authorised signatories being then 1MDB CEO Mohd Hazem Abd Rahman, then 1MDB chief financial officer Azmi Tahir and Azmi's then deputy Geh Choh Heng.
"Hazem Rahman as CEO 1MDB and director of 1MDB GIL did not have access and control over the funds issued from this bond.
"Hazem Rahman had several times made requests to Datuk Seri Najib to bring back these funds to pay for 1MDB's needs, but Jho Low conveyed the instruction that this fund cannot be brought back as it is for the use of Umno's election funds.
"Hazem Rahman had conveyed this matter to Datuk Azlin and 1MDB chairman Tan Sri Lodin to raise this matter to Datuk Seri Najib. However, Datuk Seri Najib did not allow this fund to be brought back, and no clear reason was given," she said, reading aloud from her written witness statement.
But Najib's lawyer Tania Scivetti objected to the entire paragraph that mentioned Hazem's lack of access to 1MDB funds, arguing that was hearsay.
Scivetti said Hazem was only quoting what he was told by Low.
Deputy public prosecutor Ahmad Akram Gharib countered and said Nur Aida was merely relating what Hazem had testified in court, but Scivetti insisted that what is hearsay remains hearsay.
Trial judge Datuk Collin Lawrence Sequerah recorded the defence’s objection before Nur Aida continued with her testimony.
Previously, Hazem had as the 10th prosecution witness in this trial claimed that Low had told him some of the money raised from the US$3 billion bond would be used to buy land in Penang as part of Umno's campaigning for elections.
At that time, Najib’s defence lawyer Wan Aizuddin Wan Mohammed had also raised an objection to Hazem's testimony by saying it amounted to alleged hearsay as Low is not available in court as a witness.
Hazem at that time said he had personal knowledge of part of the US$3 billion bond being used to pay for the Penang land.
Hazem had previously also testified in court that Low had told him that 1MDB was allegedly formed to help Umno and to generate funds for Umno, and that Low had rebuffed his attempts to seek for the return of 1MDB’s funds purportedly existing and locating overseas by saying that such monies were Umno funds.
After 1MDB GIL received the US$2.7 billion in its account, Nur Aida testified that this 1MDB subsidiary then sent money out totalling around US$1.59 billion for purported investments in three funds, and that some of these funds were then sent out to two companies named Tanore Finance Corporation and Granton Property Holding Limited.
Both Tanore and Granton had Low's close associate Eric Tan Kim Loong as the beneficiary owner of their bank accounts.
Nur Aida said US$620 million (equivalent to RM1.89 billion) then flowed from Tanore to Najib's account on March 22, 2013, saying that this amount was shifted to Najib's account in just one day – including from the time that 1MDB GIL received its US$2.7 billion bond proceeds.
Nur Aida said US$61 million (equivalent to RM188 million) then flowed from Tanore to Najib's accont on March 25, 2013.
In summary, Nur Aida testified that a total of US$681 million or equivalent to RM2.08 billion that originated from 1MDB GIL's US$3 billion bond – of which only US$2.7 billion was received by 1MDB GIL before it flowed out – were sent to Najib's account.
"Between March 21, 2013 and April 10, 2013, a total of RM2,081,476,926 was deposited from Tanore's Falcon Private Bank, Singapore account into Najib's AmPrivate Banking-MR no. 211-202-200969-4 where that money originated from the US$3 billion bond issued by 1MDB GIL," she said.
Previously, Najib's lawyers had insisted that he had believed that the huge sums of money flowing into his bank account were donations from Saudi Arabia, also insisting that he had allegedly returned US$620 million of the US$681 million sum to the sender.
Former Dewan Rakyat Speaker Tan Sri Azhar Azizan Harun was seen chatting with Najib and the latter’s wife Datin Seri Rosmah Mansor in the public gallery before the trial began in the morning.
Najib's 1MDB trial continues this afternoon.
