Malaysia

‘Follow orders or leave’ is 1MDB’s culture, says ex-CEO

10th prosecution witness says he didn’t reveal truth for fear it’ll jeopardise his career

Updated 5 years ago · Published on 08 Feb 2021 9:15PM

‘Follow orders or leave’ is 1MDB’s culture, says ex-CEO
Former 1MDB chief executive officer Mohd Hazem Abd Rahman in court today highlights the frustration that he felt when forced to heed instructions from fugitive businessman Low Taek Jho. – Bernama pic, February 8, 2021

KUALA LUMPUR – Former 1Malaysia Development Bhd (1MDB) chief executive officer told the high court here today that there is a culture in the sovereign wealth fund where you must “follow directions or make your way out of the company”.

This was revealed by the 10th prosecution witness, Mohd Hazem Abd Rahman, 47, during cross-examination by Datuk Seri Najib Razak’s lawyer, Wan Aizuddin Wan Mohammed, in the former prime minister’s 1MDB trial.

Wan Aizuddin was questioning the witness on an email thread containing instructions from fugitive businessman Low Taek Jho, or Jho Low, in relation to two power plant acquisitions by 1MBD, namely Genting Sanyen and Tanjong Energy, which were the opposition’s centre of attention in 2013.

According to the witness statement, Jho Low’s instructions was for the 1MDB management team to add on answers to the acquisition-related questions posed by the opposition, to make it seem more convincing.

However, Hazem, in his statement, said he did not dare to raise the truth from his point of view for fear that it will jeopardise his career in 1MDB.

Wan Aizuddin: Having said that you feared for your career in 1MDB, have you ever raised these concerns to Jho Low?

Hazem: Yes, in our BlackBerry Messenger conversations.

Wan Aizuddin: Can you enlighten me on what exactly did you mean in your witness statement?

Hazem: Whatever personal view you have, the acquisition is rather expensive. Those were the questions that were highlighted by the public, particularly the opposition, at that time. You have to follow, you have to give responses that will be acceptable to the public and not the reality of it.

Wan Aizuddin: How will your response jeopardise your career in 1MDB?

Hazem: I must follow along, if I give my own personal view, I will be regarded as not playing along with 1MDB. I’m afraid that it could have jeopardised my career in 1MDB.

The witness added that he did not go against the instructions in the email because “Jho Low ran the company”.

He agreed with Wan Aizuddin’s suggestion that despite his fears, he was still promoted to the 1MDB top position.

He replied that he is just highlighting the frustration that he felt when forced to heed instructions from Jho Low.

“This was the culture. Of course, no one said it, but if you work in any company, if you’re not happy with the boss, you quit.”

Wan Aizuddin: Look at the email that Jho Low sent to you in 2013, he referred you as a boss. Is it normal for Jho Low to call you as a boss?

To this, Hazem replied: “Sometimes it is normal. Even if you go to a mamak restaurant, people will call you ‘boss’.”

On the instructions given by Jho Low, Hazem said he did not double-check the email directly with Najib, as Jho Low is the only person who could verify the veracity of the content.

Najib, 67, is facing four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds, and 21 charges of money laundering involving the same amount.

The trial before judge Collin Lawrence Sequerah continues tomorrow. – Bernama, February 8, 2021

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