KUALA LUMPUR – Former 1Malaysia Development Berhad (1MDB) chief executive officer (CEO) told the high court today that the real shareholder of 1MDB was the government and the show was run by the former prime minister Datuk Seri Najib Razak.
Mohd Hazem Abdul Rahman, 47, said that even though the 1MDB board had the power to deliberate and make decisions, it all came down to Najib as he held the veto power.
He said this when referred to Article 117 of the Memorandum and Articles of Association of 1MDB by Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah at Najib’s trial before judge Collin Lawrence Sequerah.
Article 117, among others, stated that any critical matter, including the removal of directors, financial commitments and changes to the senior management team, would require the approval of the prime minister.
The lawyer questioned the 10th prosecution witness if he had ever come across any occasion that Najib had invoked Article 117, to which the witness replied: “Not in that manner. As far as I understand, critical matters needed to be approved by Najib.”
Shafee also questioned the witness as to whether he was aware that Najib was wearing many hats during the time, namely as the prime minister, finance minister, and chairman of 1MDB’s board of advisers, as Article 117 specifically relates to Najib’s role as the then-prime minister. The line of questioning was as follows:
Hazem: Regardless of which ‘hat’ Datuk Seri Najib was wearing, his approval was required.
Shafee: So you would take it as he had the powers to decide?
Hazem: Yes.
Shafee: That is the wrong way to do it. I put it to you that your interpretation is wrong.
Mohd Hazem: I disagree with you.
On another issue, Hazem agreed with the counsel’s suggestion that the commission of RM801 million paid to Goldman Sachs for the acquisition of 1MDB Energy (Langat) Limited was “very high”.
The witness also agreed with Shafee’s suggestion that there were cheaper means of raising the financing.
Najib, 67, faces 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 Sequerah continues tomorrow. – Bernama, January 5, 2021
