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Najib’s 1MDB trial: 1MDB’s senior executive meetings held in Jho Low’s apartment

February 15, 2021

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Former 1MDB CEO said meetings between 1MDB senior management officials and Jho Low were held at Low’s apartment near KLCC instead of at 1MDB’s office and he believed all instructions were directly from Najib.

Jho Low’s instructions to 1Malaysia Development Berhad’s (1MDB) senior management came from then prime minister Datuk Seri Najib Razak, the government-owned company’s former CEO told the Kuala Lumpur High Court today.

1MDB ex-CEO Mohd Hazem Abd Rahman said, however, he did not directly confirm with Najib as he did not have direct access to the prime minister.

Hazem was testifying as the 10th prosecution witness in Najib’s corruption trial involving more than RM2 billion of 1MDB funds.

Under cross-examination by Najib’s lead defence lawyer Tan Sri Muhammad Shafee Abdullah, Hazem said that any meetings he and other 1MDB senior management officials had with Low on 1MDB matters were carried out in Low’s apartment at 8 Kia Peng near Kuala Lumpur City Centre (KLCC) instead of at 1MDB’s office.

He said other senior 1MDB officers would also sometimes attend these meetings at Low’s apartment, including then 1MDB chief financial officer (CFO) Azmi Tahir, 1MDB’s general counsel Jasmine Loo and executive director of finance Terence Geh, who would join when requested by Low.

Shafee: Why [meet] him in his apartment and not in the 1MDB office?

Hazem: He’s not part of 1MDB.

Shafee: Why can’t he come to 1MDB?

Hazem: Because he cannot appear. He cannot be seen to be giving advice to 1MDB; he cannot appear in the 1MDB office.

Shafee: What about the fact that he was advising? Did the senior management know? Who would know?

Hazem: The names are Azmi, the [then] CFO, Vincent Koh, Robert Ho on the communications side, Terence Geh, Jerome Lee [and] Jasmine Loo, obviously. Those are the ones that I know who have spoken to Jho Low.

Furthermore, Hazem said the instructions given by Low, sometimes did not even make financial sense.

Hazem: In the traditional sense, in corporate governance sense, it doesn’t make sense. But coming from the message that Jho Low is basically all the instructions from the prime minister.

Shafee: Which you did not confirm with the prime minister?

Hazem: I think yeah, there is no confirmation as well as verifying that these instructions are cleared by the prime minister.

Hazem said that while he had not personally asked Najib to confirm instructions from Low — especially instructions that did not seem to make financial sense or common sense — on 1MDB, he pointed out however that there were occasions where Low was present in meetings with the prime minister and that he took it that “Jho Low’s plans are sanctioned by the prime minister himself.”

Hazem had previously said that when he arrived at Najib’s house, Low was already there in a previous discussion with the prime minister, before the prime minister met with him and Low in a subsequent meeting.

Hazem also told the court that June 10, 2015, was the first time he had given his statement to the Malaysian Anti-Corruption Commission (MACC), with this statement recorded while he was still a 1MDB director and only regarding 1MDB’s real estate matters, particularly a purchase by Tabung Haji of one of the plots of land in the Tun Razak Exchange Development (TRX).

Hazem said the next time that MACC recorded a statement from him was in 2018 after the 14th general elections. All in, he said the MACC recorded statements from him a number of times.

Hazem joined 1MDB as chief operating officer (COO) in August 2012 and was its CEO from March 2013 until early January 2015.

The High Court had previously heard about Low’s apartment during the testimony of Najib’s former special officer Datuk Amhari Efendi Nazaruddin, the prosecution’s eighth witness.

Amhari testified that Low had briefed him about the formation of the Terengganu Investment Authority (TIA), the precursor to 1MDB, by scribbling on a whiteboard in the apartment’s kitchen.

Today, Hazem also agreed that he was told by Low in a July 2012 meeting that 1MDB was meant to benefit Umno. He added that he was briefed on this by Low before he took up the COO position in 1MDB.

Agreeing that it would be “wrong” and “criminal” for 1MDB as a government-owned company to benefit Umno, Hazem, however, said that he did not dare to turn down the appointment as 1MDB COO.

Shafee: Before you took the contract, you knew this is wrong. So, you went into 1MDB, took up the contract, with your eyes wide open?

Hazem: Yes.

Shafee: You are going to be a participant in a criminal act.

Hazem: Yeah.

Shafee: You were OK with that?

Hazem: You know, at that time, I was fearful of basically snubbing the prime minister, because I heard my CV has been minuted.

On June 28, 2018, it was reported that the MACC had raided the Kia Peng apartment, which was believed to have also acted as a “safe house” for Low, who is currently on the run, after retrieving information about the residence from its interrogation on Amhari.

It was reported that MACC officers had to break into the apartment as no one was at home, and the place looked more like an office, complete with computers, a photocopying machine, and a paper shredder.

In the raid, MACC found cash and several documents in the apartment.

In the 1MDB trial, Najib, who is also former finance minister, is facing four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount.

He faces up to 20 years’ imprisonment if convicted.

Earlier reports:

Feb 10, Najib’s 1MDB trial: Najib claimed Saudi prince “donated” to 1MDB’s charity arm

Feb 9, Najib’s 1MDB trial: Najib received RM2.973b from 1MDB

Feb 9, Najib’s 1MDB Trial: Jho Low known as “PMO” in 1MDB board meetings was “the man”

Feb 8, Najib’s 1MDB Trial: Ex-CEO says in 1MDB, you either follow instructions or quit

Jan 6, Najib’s 1MDB trial: Day 52

Jan 5, Najib’s 1MDB Trial: Day 51

Sept 17, 2020, Najib’s 1MDB Trial: Day 50

Sept 15, Najib’s 1MDB Trial: Day 49

Sept 14, Najib’s 1MDB Trial: Day 48

Sept 3, Najib’s 1MDB Trial: Day 47