KUALA LUMPUR (Sept 7): Even before former 1Malaysia Development Bhd (1MDB) chief executive officer Mohd Hazem Abdul Rahman (pictured, front right) managed to testify as a prosecution witness in ex-prime minister Datuk Seri Najib Razak’s 1MDB-Tanore trial today, lead defence lawyer Tan Sri Muhammad Shafee Abdullah filed an application to dispute Mohd Hazem's witness statement as hearsay. 

During the hearing here today before High Court judge Justice Collin Lawrence Sequerah, Muhammad Shafee argued that 24 pages out of the over 100 pages containing Mohd Hazem's witness statement were hearsay and should be inadmissible in court.

In legal context, hearsay is an out-of-court statement used in court as evidence for a case.

Citing an example, Muhammad Shafee quoted a few lines from Mohd Hazem's witness statement which claimed that fugitive businessman Low Taek Jho (Jho Low) had told Mohd Hazem that 1MDB was formed to pump in funds into Umno. 

Referring to paragraph six, Muhammad Shafee said Mohd Hazem claimed that in a meeting with Low, Low had informed him (Mohd Hazem) that the real reason 1MDB was formed was to help Umno through businesses and strategic investments.

Muhammad Shafee however argued that Mohd Hazem "did not indicate specifically how he (Najib) will use 1MDB to help Umno.” 

Muhammad Shafee said unless Low is cross-examined in court, Mohd Hazem’s statement will just be hearsay.

In response, deputy public prosecutor Ahmad Akram Gharib argued that Mohd Hazem’s witness statement and testimony tally with Najib and Low’s conduct, hence should support the charges against the former prime minister. 

Ahmad Akram said if the defence's objection to Mohd Hazem's statement is allowed and if certain paragraphs in the witness statement are omitted, the whole story of the 1MDB case will not be told in its entirety. 

“They are not hearsay, they are admissible because it forms part of the transaction. I refer you to the charges, at the end of the day, this is what we are trying to prove, that the accused did some sort of act. In order for us to prove that, we have to call the witness.

"This is the way they tell their stories. At the end of the day, in unfolding the narrative of their stories, they have to say why they did what they did,” Ahmad Akram said.

Ahmad Akram said Mohd Hazem's testimony will be supported by email interactions between the former 1MDB CEO and Low.

After hearing submissions from both sides, Sequerah said today that he will decide on the validity of Mohd Hazem’s witness statement when the trial resumes tomorrow (Sept 8) afternoon. 

As such, Sequerah said he could not call Mohd Hazem to testify in court today.

Mohd Hazem was scheduled to start testifying in the 1MDB-Tanore trial today but due to the defence’s application, he never saw the inside of the courtroom.

Mohd Hazem was successor to ex-1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, who is also a prosecution witness in Najib's 1MDB-Tanore trial.

The defence had also earlier submitted an objection against the alleged hearsay portions in Shahrol's witness statement, which included the part where Shahrol described the relationship between Low and Najib as being “close”.

In response then, lead prosecutor Datuk Seri Gopal Sri Ram contended that Shahrol's statement was circumstantial evidence. 

At that time, Sequerah reserved his judgment on the validity of Shahrol's witness statement. Sequerah said then that he will announce his ruling at the end of the prosecution's case.

In the 1MDB-Tanore trial, Najib is facing four counts of abuse of power for using his position as the then prime minister, finance minister and 1MDB board of advisers’ chairman to receive gratification worth RM2.28 billion.

He also faces 21 counts of money laundering involving over RM4.3 billion.

Najib was prime minister of Malaysia between 2009 and 2018.

The Edge is covering the trial live here.

Users of The Edge Markets app may tap here to access the live report.