KUALA LUMPUR – Former 1Malaysia Development Berhad (1MDB) chief executive officer Mohd Hazem Abdul Rahman denied in the high court today that he committed any wrongdoing to enable and facilitate fugitive businessman Low Taek Jho’s plan to misappropriate funds from the company.
Hazem, 49, said this when cross-examined by Datuk Seri Najib Razak’s lead counsel, Tan Sri Muhammad Shafee Abdullah, who claimed that Hazem was the one assisting Low, better known as Jho Low, to misappropriate a US$250 million financing facility from Deutsche Bank, as well as a US$175 million transfer to Aabar Investment PJS Ltd, also known as “fake Aabar”.
The 10th prosecution witness, who was the 1MDB CEO from March 2013 to early January 2015, said this in the former prime minister’s trial involving the misappropriation of RM2.3 billion in 1MDB funds.
The witness also disagreed with Shafee’s contention that he had colluded with others in the 1MDB management team, including its former general counsel, Jasmine Loo; its former chief financial officer Azmi Tahir; and, its executive director Terence Geh to fabricate an agreement relating to an option agreement between Aabar Investment PJS Ltd and 1MDB Energy Holdings Bhd.
The said agreement had caused the transfer of US$175 million from the loans secured by two 1MDB subsidiaries, 1MDB Energy Holdings Sdn Bhd and 1MDB Energy (Langat) Limited, to Aabar for the purpose of redeeming the share option.
When asked by Shafee whether he had provided fraudulent justification for the transfer of funds, the witness denied it.
Shafee: To execute exhibit P777A (the Aabar option agreement), you committed two serious offences; one is a criminal breach of trust under Section 409 of the Penal Code. Breach of trust by a director like you, what do you say to that?
Hazem: I disagree.
The witness also disagreed with the lawyer’s suggestion that he had committed abuse of power as a CEO to facilitate the misappropriation of US$250 million for the sole benefit of Jho Low.
Earlier, Najib’s other counsel, Tania Scivetti, contended that Hazem had abused his position to misappropriate the company’s funds, which the witness denied.
Hazem also dismissed the lawyer’s suggestion that he was personally selected by Jho Low to use his position to carry out actions that included instructing Loo to prepare a board resolution and ensuring that the board of directors signed the resolution to the disadvantage and detriment of 1MDB and its shareholders.
Scivetti had also suggested that Hazem signing the resolution without any reservation was one of the many acts from which Jho Low benefitted, by having him in the pivotal role as the director and CEO of 1MDB and its subsidiaries, to which Hazem replied, “disagree”.
Najib, 68, is on trial over 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 justice Datuk Collin Lawrence Sequerah continues tomorrow. – Bernama, August 18, 2021
