1MDB benefited Malaysia: Najib
The former finance minister said this in the High Court in Putrajaya today after the prosecution contended that the troubled Malaysian sovereign wealth fund caused the country to suffer high debt...
Summary
Najib Abdul Razak testifies that debt-saddled 1MDB has many assets and brought benefits to Malaysia.
The ex-prime minister rebuts the prosecution’s claim that the troubled sovereign wealth fund brought no benefit to the country.
1MDB TRIAL | Former prime minister Najib Abdul Razak has testified that he believed 1MDB has benefited Malaysia.
The former finance minister said this in the High Court in Putrajaya today after the prosecution contended that the troubled sovereign wealth fund caused the country to suffer high debt.
During cross-examination by deputy public prosecutor Kamal Baharin Omar, Najib agreed that 1MDB suffered from high debt as far back as 2015.
The former chairperson of 1MDB’s board of advisers explained that the fund’s then-president Arul Kanda Kandasamy came up with a rationalisation plan to pare down its RM48 billion debt.
Kamal: It (1MDB) did not give any advantage to the nation.
Najib: Its assets are many, and 1MDB contributed to the country even though certain things happen.
When Kamal referred to a 2014 letter from Bank Negara to the Finance Ministry warning that 1MDB’s worsening financial standing could jeopardise the government, Najib agreed with the central bank’s concern.
Kamal: I say that (1MDB) brought no benefit to the country.
Najib: I disagree, there were benefits.
Kamal: This letter from (Bank Negara Malaysia’s then-governor) Zeti (Akhtar Aziz), you received this?
Najib: Yes.
Kamal: Based on this, it shows 1MDB brought no benefit (to Malaysia).
Najib: I disagree, I will explain later.
According to the Auditor-General’s Report issued in October last year, the federal government channelled grants amounting to RM39.74 billion to 1MDB from 2019 to 2023.
The report over the government’s 2023 financial statement stated that the grants were intended for principal repayment and other expenses, including bond interest and coupon payments.
“In addition to the repayment, the federal government needs to provide an allocation amounting to RM9.46 billion.
“It consists of a total of RM5 billion for the principal of Sukuk Islamic Medium Term Notes (IMTN), which will mature on May 27, 2039, and RM4.46 billion for IMTN coupon payments for the period from 2024 to 2039 (15 years and six months),” read the report.
It stated that the federal government would have to pay the IMTN coupon of RM287.5 million per year.
The report also recommended that the government recover assets related to 1MDB and SRC International Sdn Bhd from domestic and foreign parties.
Initially established as the Terengganu Investment Authority in 2008, the state-owned fund's ownership was transferred to the federal government the following year and renamed 1MDB.
The sovereign wealth fund's stated purpose was to ensure long-term sustainable development while safeguarding the economic well-being of Malaysians.
‘No grudge'
During cross-examination by deputy public prosecutor Ahmad Akram Gharib, Najib remarked that he held no grudge against the prosecution team.
The former premier explained that it was because the premise of the entire case against him was driven by political persecution.
"What I meant was the charges against me, on reasons as I mentioned, were predicated on political prosecution and persecution.
"Your team was just following flawed charges, you were bidding on the charges that were flawed.
"Nothing (against Akram and other members of the prosecution team) on a personal basis. You were carrying out prosecution on charges that were politically motivated," Najib told Akram.
Najib also disagreed with Akram's assertion that the ex-premier had no evidence that the United States Department of Justice (DOJ) conspired with the prosecution to bring the accused to court.
Previously, Najib testified that he believed the DOJ conspired with the Malaysian opposition in 2016 to effect regime change during his administration.
Answerable case
On Oct 30, the criminal court ordered Najib to enter his defence over four abuse of power and 21 money laundering charges involving RM2.27 billion of funds from troubled sovereign wealth fund 1MDB.
Trial judge Collin Lawrence Sequerah ruled that the prosecution succeeded in establishing a prima facie (answerable) case against Najib over the Minister of Finance Incorporated’s (MOF Inc) wholly owned company.
The judge ruled that Najib had to answer the charges due to the strength of the various 50 witness testimonies during the prosecution stage of proceedings that lasted six years since the trial began in 2019. The accused was first charged in 2018.
Since the prima facie ruling, Najib has been testifying in his defence against the 1MDB criminal charges.
The former Pekan MP has been taking the witness stand to defend himself since Dec 2 last year, spending 21 days giving oral evidence.
He was cross-examined by the prosecution for 10 days, with prosecutors having wrapped up their grilling this afternoon.
Najib’s defence team headed by lawyer Muhammad Shafee Abdullah is expected to begin re-examining the accused tomorrow.
The defence team had also previously informed the criminal court that they expect to call another 20 witnesses to speak on behalf of Najib.
Throughout the criminal trial, Najib maintained he had no knowledge or involvement in wrongdoing at 1MDB, and that all embezzlement there was solely masterminded by fugitive businessperson Low Taek Jho (Jho Low) and its management.
The accused also relied on the defence that he was led to believe that the billions of ringgit that flowed into his bank account were donations from Saudi Arabian royalty, following his meeting with the Middle Eastern kingdom's late ruler King Abdullah in 2010.
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