PUTRAJAYA, Feb 27 — Former 1Malaysia Development Berhad (1MDB) chairman Tan Sri Che Lodin Wok Kamaruddin today tried to explain why he had abruptly denied being a “proxy” to former prime minister Datuk Seri Najib Razak, by suggesting that their relationship spanning about 45 years was mostly just “formal” in nature.

Lodin was testifying as the 12th defence witness for Najib in the latter’s trial involving 1MDB’s RM2 billion, which were alleged to have entered Najib’s private AmIslamic bank accounts.

Today, deputy public prosecutor Kamal Baharin Omar highlighted that Lodin had not testified about his relationship with Najib at all in his entire 211-page witness statement, but that Lodin had on the seventh page abruptly denied being Najib’s proxy as a board member of 1MDB’s predecessor Terengganu Investment Authority (TIA) and later 1MDB.

“I always take this kind of appointment as a professional, want it to be said I am close with Datuk Seri Najib — maybe, maybe not. But I’ve known Datuk Seri Najib maybe 45 years, but most of the interactions or relationship with Datuk Seri Najib is more on a formal basis. He was minister of defence,” the 75-year-old Lodin replied.

Kamal Baharin then suggested it was strange for Lodin to not testify about his relationship with Najib but to suddenly deny he was a proxy.

Lodin did not address the abruptness of his denial, but instead explained what he understood the word “proxy” to mean: “You please take care of my interest, or I put this share in your name or it’s meant for me ... That is what I mean is meant by ‘proxy’.”

After graduating from university in 1973, Lodin’s first job was as general manager of Fraser’s Hill Development Corporation in Pahang until 1982, and in 1982 became deputy general manager at Armed Forces Fund Board (LTAT), and was appointed as LTAT CEO two years later. He was LTAT CEO until he stepped down in September 2018.

Lodin became group managing director of LTAT’s Boustead Holdings Berhad in 1991, and became Boustead’s deputy chairman in 2010. He continued to hold these positions until he stepped down in December 2018.

Asked by Kamal Baharin, Lodin said he had yet to know Najib when taking up his first job at Fraser’s Hill Development Corporation, and that he remembered having served Najib for less than a year when the latter became Pahang menteri besar and formally known Najib by then.

Najib was chief minister of Pahang from 1982 to 1986, and was defence minister in two periods from 1990 to 1995, and from 2000 to 2008.

Lodin confirmed that LTAT was under the Defence Ministry and requires approvals from the defence ministry, while Boustead engages in multiple businesses including building ships for the Malaysian navy.

Lodin confirmed that both LTAT and Boustead handled military-related contracts, and that he as the LTAT CEO and Boustead group managing director had many official dealings with then defence minister Najib.

I don’t have Najib’s phone number

Lodin said that 1MDB’s predecessor TIA’s CEO Datuk Shahrol Azral Ibrahim Halmi had made an appointment to meet him in 2009, and that this was the first time he had met this person and that he did not know Shahrol then.

“I’m quite open, any person who wants to meet me, I allow, you know, but he introduced himself as the CEO of TIA,” Lodin said.

Previously, Lodin testified that Shahrol had met him to inform him that he was selected to be a TIA director upon then prime minister Najib’s advice.

Lodin previously said however that he did not verify or check with Najib and only relied on what Shahrol told him about his appointment as TIA director.

Today, Kamal Baharin asked if Lodin had asked Shahrol — whom he had never met before and claimed that the appointment was on Najib’s advice — what is TIA before taking up this job in TIA.

Lodin replied: “Shahrol came to me, and briefed me about TIA and all the good parts of TIA, why the government wanted to establish TIA, and he did mention, if I’m not mistaken, it was going to be federalised.

“It will be a kind of sovereign wealth fund and it will be involved in a few major economic activities, to me it sounds exciting and because it came from Datuk Seri Najib Razak, so I considered it as an honour.”

Kamal Baharin asked if Lodin had called Najib or checked with Najib to see if Shahrol’s claim was true, but Lodin said he did not have Najib’s phone number.

“Yang Arif, I always respect the seniors, especially the prime minister. I don’t think I have his phone number. So I’m not easily accessible to Datuk Seri Najib, when I want to see him, I always make an appointment, so I know he’s a very busy person,” he said, adding however that there was later a letter by Najib on his appointment as TIA director.

Asked if it was akin to an order from the prime minister for him to become a TIA board member, Lodin said :”I think I could decline, but I thought, the government planned this, and it is for the good of the country, for the good of the people, and it’s not a directive, it’s up to me, there was no compulsion on my part to accept.”

Lodin said he accepted the appointment as TIA director as he believed he could contribute based on his experience, and as he saw that other government-linked companies (GLCs) and government-linked investment companies (GLICs) CEOs were also being appointed to the board, saying: “So if Datuk Seri Najib felt I could play some role, of course it’s an honour.”

Lodin became TIA’s director on August 11, 2009, and stayed on as a director when TIA was renamed as 1MDB and became a Finance Ministry-owned company. Lodin was 1MDB chairman from October 20, 2009 until his resignation in May 2016.

Najib was finance minister from September 2008 to May 2018, and was prime minister from April 2009 to May 2018. He was also formerly chairman of 1MDB’s advisory board.

Najib’s 1MDB trial before trial judge Datuk Collin Lawrence Sequerah resumes this afternoon.