Malaysia

1MDB management silent after securing US$3 bil loan: witness

Finance Ministry sought details on usage but received no feedback, says ex-deputy sec-gen

Updated 3 years ago · Published on 06 Sep 2022 8:40PM

1MDB management silent after securing US$3 bil loan: witness
Datuk Seri Najib Razak (left) 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. – Bernama pic, September 6, 2022

KUALA LUMPUR – The high court here today was told that the management of 1Malaysia Development Berhad (1MDB) never gave any feedback after securing a US$3 billion (RM13.5 billion) loan through a letter of support (LoS) issued by the government.

Former Finance Ministry deputy secretary-general Datuk Siti Zauyah Mohd Desa, 63, said various efforts were made by the ministry to get the latest information from 1MDB on how the US$3 billion was used, but the company never responded.

“I tried to contact the management of 1MDB through letters and phone calls. We also contacted the representative of 1MDB at the time, Zahid Taib to give feedback and submit a report to the Finance Ministry, but there was no reply.

“I also confirm that I have never seen the joint venture agreement document between 1MDB and Aabar Investment BVI Co, which is in their LoS application to the government to secure the US$3 billion loan,” she said when cross-examined by lawyer Wan Aizuddin Wan Mohammed, who was representing former prime minister Datuk Seri Najib Razak at the trial involving the misappropriation of RM2.3 billion from 1MDB. 

The 26th prosecution witness then agreed with Wan Aizuddin’s suggestion that 1MDB’s lack of response showed the weakness of the company’s management.

Wan Aizuddin: “Do you agree with me that you can’t attribute the fault of 1MDB management to the prime minister, finance minister and the chairman of the board of advisers?” (All these positions were held by Najib)

Siti Zauyah: “From what I can remember, there was a letter from Datuk Shahrol Azral Ibrahim Halmi (former 1MDB CEO) stating that the management cannot reveal any information about the use of US$3 billion because they have to refer to the 1MDB board of directors first”.

Wan Aizuddin then referred to Siti Zauyah’s witness statement which stated that Malaysia is now forced to pay back the 1MDB debt due to the LoS issued by the government and signed by Najib as finance minister in 2013.

Siti Zauyah confirmed that she had no personal knowledge of the matter but made a statement based on hearsay from the officer in charge of managing the LoS process.

Asked if she had seen any document showing that 1MDB failed to make repayments causing the government to bear the debt, Siti Zauyah replied, “I don’t remember…there must be some evidence. That’s why I said that in my witness statement.”

Wan Aizuddin: “Interestingly, you made this statement, ‘LoS signed by Najib as finance minister’. Are you stating that the government has to bear the debt because Najib signed the LoS, and therefore he is at fault?” 

Siti Zauyah: “No comment.”

Najib, 69, 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 Datuk Collin Lawrence Sequerah continues. – Bernama, September 6, 2022

Related News

Malaysia / 3mth

Rosmah: ‘There was no obligation for me to buy any of the jewellery’

Opinion / 1y

A tribute revisited: Why I needed hope

Malaysia / 1y

1MDB trial postponed again as Najib remains in hospital

Malaysia / 1y

1MDB trial postponed as Najib warded at HKL

Malaysia / 1y

Jho Low didn’t represent Najib, says Shafee in 1MDB trial

Malaysia / 1y

Najib brought Malaysia to excellence, says Zahid’s daughter

Spotlight

Malaysia

Najib raises objections to 80% of ex-1MDB CEO’s witness statement over hearsay

Malaysia

Tun Dr Mahathir, Siti Hasmah create ASEAN record

By Alfian Z.M. Tahir

Malaysia

Nanta Linggi to leave Parliament after five terms, may contest new Sarawak state seat

World

Typhoon Dolphin’s remnants swamp Beijing as China braces for more extreme rainfall

Malaysia

Anwar expected to leave hospital today after successful treatment

Malaysia

Husband and wife face death penalty for drug trafficking

Malaysia

Former Subang MP, Wong Chen joins Bersama

Malaysia

Malaysian dies while transiting in Bangkok to Japan (video)

You may be interested

Malaysia

US$620 million returned, not to Najib's account - Angela

Malaysia

Tap underutilised female talent to lead Malaysia’s green economy, urges Nancy Shukri

Malaysia

RM85 billion energy savings in sight as Malaysia rolls out 10-year efficiency plan

Malaysia

RoS probes Bersatu complaint over position in Perikatan Nasional

Malaysia

Opposition MPs leave Dewan Rakyat, do not take part in RCI TH Minister's briefing

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Selangor yet to finalise funding for RM3 billion Shah Alam Stadium redevelopment

By Alfian Z.M. Tahir

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range