PUTRAJAYA, Oct 23 — The defence in Datuk Seri Najib Tun Razak’s 1Malaysia Development Berhad (1MDB) trial informed the High Court today that there was no clear indication the company’s decision to enter into a joint venture with PetroSaudi International Ltd (PSI) was influenced by Najib’s phone conversation with former 1MDB chairman Tan Sri Mohd Bakke Salleh.
Najib’s counsel, Wan Azwan Aiman Wan Fakhruddin, submitted that the conduct of 1MDB’s management and board of directors (BOD) demonstrated their intention to proceed with the joint venture even before the said phone conversation.
“This is especially because the contemporaneous records also show that they (1MDB management and BOD) were taking active steps to finalise and work towards the realisation of the partnership with PSI, with the appointment of corporate representatives and the opening of a joint bank account with PSI, of all things.
“The greater question is, if the BOD was directed to participate in the joint venture with PSI by the Prime Minister himself, how dare they impose prerequisites and stipulations before agreeing to enter the joint venture to delay the matter?” he submitted during Najib’s trial for the alleged misappropriation of RM2.3 billion in 1MDB funds, before Justice Datuk Collin Lawrence Sequerah.
During previous proceedings, it was established that the phone call was made by fugitive businessman Low Taek Jho (Jho Low) asking Najib if he would speak to Mohd Bakke before a 1MDB special board meeting on Sept 26, 2009, to convey the general context of the purported Government-to-Government initiative between Malaysia and Saudi Arabia.
Wan Azwan Aiman contended that despite Mohd Bakke’s assertion that the joint venture would not have proceeded without the brief telephone conversation, the Notice of the Special Board Meeting dated Sept 25, 2009, demonstrated otherwise, as the meeting had been specifically convened to approve the venture with PSI.
The defence is presently advancing submissions on the first charge against Najib under Section 23(1) of the Malaysian Anti-Corruption Act 2009, which alleges that during a special meeting held at The Royale Bintang, Damansara, Petaling Jaya, he had directed the Board of Directors to approve a resolution for 1MDB to enter into a joint venture with PSI by subscribing to RM1 billion worth of ordinary shares in the company at USD1.00 per share.
On May 6, Najib’s defence closed its case after calling 26 witnesses, and the court scheduled nine days beginning Oct 21 for oral submissions.
Najib, 72, faces four charges of using his position to obtain RM2.3 billion in 1MDB funds as gratification at the AmIslamic Bank Berhad branch on Jalan Raja Chulan, Bukit Ceylon here between Feb 24, 2011, and Dec 19, 2014.
He was charged under Section 23(1) of the MACC Act and faces up to 20 years in prison and a fine of either five times the amount of the bribe or RM10,000, whichever is higher, upon conviction.
The former Pekan member of parliament is also accused of 21 counts of money laundering, allegedly committed at the same bank between March 22, 2013, and Aug 30, 2013.
These charges were brought under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, which provides for a maximum fine of RM5 million and imprisonment of up to five years, or both, upon conviction.
Najib has been serving his sentence at Kajang Prison since Aug 23, 2022, following his conviction for misappropriating RM42 million from SRC International Sdn Bhd.
The High Court initially sentenced him to 12 years in prison and fined him RM210 million, a decision which was subsequently upheld by the Court of Appeal and the Federal Court.
However, his petition for a royal pardon on Sept 2, 2022, resulted in the Pardons Board halving his prison sentence to six years and reducing his fine to RM50 million.
The hearing resumes tomorrow. — Bernama
