KUALA LUMPUR (Jan 5): 1Malaysia Development Bhd’s (1MDB) former chief financial officer (CFO) Azmi Tahir told the High Court here on Wednesday that during his tenure in 1MDB, he was “worried” about the decisions of the 1MDB management.
During Azmi’s cross-examination by former premier Datuk Seri Najib Razak’s lawyer Datuk Hariharan Singh Tara Singh in the 1MDB-Tanore trial, the former 1MDB CFO said he questioned 1MDB management’s decisions, but only went as far as having "discussions" with management in raising his concerns.
Hariharan: [In your witness statement,] you say “curiga berkenaan keputusan”. Can you give any example of decision made by [former 1MDB CEO] Datuk Shahrol [Azral Ibrahim Halmi] that you know was not in the best interest of the company i.e. 1MDB or its subsidiary?
Azmi: Curiga here also means ‘I’m worried, I question why, how', things like that, just to be clear. So for example, it doesn’t mean that it is not in the company’s best interest, for example you do a bond with Tanjung Plc, then you do a bond with Mastika (Genting Bhd), so obviously I would question "how we would pay for all this, what is this plan?"
Hariharan: How about [former 1MDB CEO Mohd] Hazem [Abd Rahman], so what decision of Hazem’s were you ‘curiga’ or worried [about]?
Azmi: At that point in time, probably the next bond, the US$3 billion bond that we had to raise.
Hariharan: Now when you say that you were worried, surely as a person who has gone through various experiences as you confirmed [earlier], you would prepare yourself, and if there were any issues, you would take measures to protest, that was your earlier evidence. So in circumstances where you find decisions of theirs that worry you, did you take any measures to either face them or inform the board of directors [BoD]?
Azmi: We talked about it, but when you work with a company, of course you do not always agree with what the management does.
Hariharan: Did you put any memo protesting to the BoD, Shahrol or Hazem?
Azmi: Not memo, but discussions yes.
Earlier, when answering questions from the prosecution, Azmi told the court that he had confided with Hazem about his doubts or concern over some of the management's and board's decisions and these included those concerning the power plant deals and the Tun Razak Exchange (TRX) project.
To recap, 1MDB had spent RM12.08 billion to pay for power assets which include RM8.5 billion for Tanjong Energy Plc, RM2.35 billion for Genting Sanyen Power Sdn Bhd, and RM1.2 billion for a 75% stake in Jimah Energy Ventures Sdn Bhd. The troubled fund had borrowed a total of RM21.8 billion to finance the purchases via bond issuances, bank loans and bridging loans, but ended up only selling the assets for RM9.83 billion to China’s state-owned China General Nuclear Power Corp.
Najib allegedly instructed 1MDB to not touch funds
The 47-year-old witness added that another "worry" of his concerned 1MDB’s lack of access to funds, adding that there was no explanation on why such an inhibition was in place to restrict its usage.
Azmi said he had allegedly been told by his then 1MDB superiors, including Hazem, that Najib was the one who gave the directive to not use 1MDB funds.
“One [instance] that was clearly quite pivotal for [1MDB] at that time, as I said we had projects like the TRX but we could not access the money.
“I remember Hazem telling me he went to see [then 1MDB chairman] Tan Sri Che Lodin Wok Kamaruddin, to convey this matter that we need to access this money, these funds are overseas, and according to Hazem, he came back to me and said Tan Sri Lodin met with the PM and asked, but he was told not to touch [the funds].
“That is one instance I asked ‘but why?’,” he told Judge Datuk Collin Lawrence Sequerah, who was presiding over the case.
Najib faces four counts of abuse of power for allegedly using his position as prime minister, finance minister and chairman of 1MDB’s board of advisers to receive gratification worth RM2.28 billion.
Najib also faces 21 counts of money laundering involving over RM4.3 billion.
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