Friday 29 Mar 2024
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This article first appeared in The Edge Malaysia Weekly on July 29, 2019 - August 4, 2019

FROM 2011 to 2013, former prime minister Datuk Seri Najib Razak opened five accounts with AmBank Bhd, which were all — except one (a savings account) — coded to hide his identity. The secret coding was implemented with the knowledge and approval of Bank Negara Malaysia.

The request for such codes was made by Penang-born businessman (now a fugitive) Low Taek Jho, or better known as Jho Low, and former SRC International Sdn Bhd chief executive and managing director Nik Faisal Ariff Kamil, and ostensibly for confidential purposes.

This was revealed during Najib’s SRC trial at the Kuala Lumpur High Court last week when key prosecution witness Joanna Yu Ging Ping took the stand.

She told the court that Najib’s two accounts — opened in January 2011 — were coded by AmBank, and that its former managing director, Cheah Tek Kuang, had informed the then Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz of this.

A former relationship manager of the bank, Yu, 48, testified on Monday that Najib opened two accounts — a savings and a current — with the last three digits 481 (savings) and 694 (current) in January 2011.

“The current account was later designated with the code name ‘AmPrivate Banking-MR’. The code name was the first individual account to have been designated as such, based on my dealings with my portfolio of corporate clients,” she said, adding she did not know who decided on the code name.

“I was subsequently informed by Cheah that the then Bank Negara governor (Zeti) had been informed of the matter.”

Previous testimony revealed that the two accounts were opened for Najib to receive what he claims to be Saudi donations of US$681 million, of which US$620 million was subsequently returned.

On March 10, 2011, Nik Faisal was given a mandate by Najib to oversee the two accounts. The bank was also authorised to clear cheques presented for amounts of up to RM250,000 without further reference to Najib or Nik Faisal.

 

Three current accounts coded in 2013

The two accounts were closed in June or July 2013, and Yu said she was informed by Nik Faisal to open three new current accounts for Najib, and that they bore the following last three digits and code: 880 (AmPrivate Banking-1MY), 906 (AmPrivate Banking-MY) and 898 (AmPrivate Banking-Y1MY).

“In relation to the code names used for the three current accounts, I was informed by Nik Faisal that Najib had instructed AmBank to maintain the similar code name specifications used for the initial current account opened in 2011 to ensure confidentiality,” she said, confirming her email correspondence with Nik Faisal on July 29, 2013, to corroborate the directive.

The balance from the 2011 accounts were deposited in the 880 account, Yu said, adding on July 31, 2013, Najib gave Nik Faisal the mandate to oversee the three accounts.

Along with AmBank’s Daniel Lee and Noor Haslina Daud, Yu was authorised by Najib to collect documents such as statements and cheque books to the three accounts.

Nik Faisal also issued an instruction letter, dated Aug 26, 2013, stating that all of Najib’s credit-card statements or communications be brought to Yu’s or Lee’s attention.

Yu said she did not have access to Najib and that Nik Faisal acted on Najib’s behalf as his mandate holder. But when Nik Faisal was not available, she would contact Low, who, in turn, would get in touch with Nik Faisal to resolve the problems.

She said there were a number of problems, including the three current accounts, which were constantly overdrawn. Getting clearance for credit-card transactions, which exceeded the combined limit of RM3 million, was another.

The three accounts were eventually closed on March 9, 2015.

 

No complaints from the former prime minister

Although the five Najib accounts saw a lot of transactions, deposits and cheques issued — some to the tune of millions of ringgit — Yu said the former premier had not complained of any problems.

She told lawyer-appointed-prosecutor Datuk V Sithambaram that she was not questioned by Najib when Nik Faisal issued a cheque on Najib’s behalf, even though the sole signatory of the accounts was Najib himself.

Sithambaram asked Yu, who worked in AmBank until 2015, whether there had been any complaints of unauthorised cheques by a third party issued on Najib’s behalf.

“There weren’t any complaints that I was aware of,” she replied.

Sithambaram: “With the mandate given to Nik Faisal by Najib, was it at all possible for Nik Faisal to withdraw or take out money from Najib’s current or savings account?”

Yu: “He can’t.”

Sithambaram: “From the day you opened current account 694 and savings account 481 on Jan 18, 2011, to the closing of both the accounts, which we have established, on Aug 30, 2013, were there any complaints by the account holder (Najib) and/or Nik Faisal that the accounts were not operated in accordance with the mandate?”

Yu: “There were no complaints.”

She said from the time the three current accounts were opened in 2013 until their closure in March 2015, there were also no complaints lodged by Najib or Nik Faisal.

Sithambaram: “Did the account holder accuse you of conspiracy with Jho Low to carry out unauthorised or fraudulent transactions in his accounts when you were the relationship manager of these accounts?”

Yu: “No.”

Najib’s counsel had previously painted Yu and her former colleagues of being “rogue bankers”, of acting contrary to instructions.

During cross-examination by defence counsel Harvinderjit Singh, Yu claimed that she was introduced to Low in 2009 when the Terengganu Investment Authority — the precursor to 1Malaysia Development Bhd — was set up, but the defence established that she had known him a year earlier.

Najib is facing seven charges — three for criminal breach of trust, one for abuse of power and another three for money laundering of RM42 million of SRC’s funds.

Hearing continues next week.

 

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