Datuk Seri Najib Razak as the then prime minister was the one who ultimately ran the show for 1Malaysia Development Berhad (1MDB), which was owned by the government, the company’s former CEO told the court today.
Testifying as the 10th prosecution witness against Najib in a criminal trial, 1MDB’s ex-CEO Mohd Hazem Abd Rahman today dismissed the idea that he could have resisted any directives by Najib if they went against the company’s interests, suggesting that this would not be how the situation would be in reality.
During the 1MDB trial today, Najib’s lead defence lawyer Tan Sri Muhammad Shafee Abdullah sought to use the 1MDB Memorandum and Articles or Association (M&A), or the company’s constitution, to argue that it was the board of directors that ran the company instead of Najib in his various roles as then finance minister or on behalf of the company’s shareholder MOF Inc.
MOF Inc is owned by the Finance Ministry, and Najib had as then finance minister signed off on approvals for 1MDB affairs on behalf of the shareholder.
Shafee went on to say that Article 6(e) of the company constitution had stated MOF Inc is a separate legal entity from 1MDB, and that MOF Inc shall not be responsible for the obligations and liabilities of the company.
“If the company through the board of directors blunders, invests wrongly, pays to wrong people, siphon money out — you know whatever happened in 1MDB, here it says the MOF Inc shall not be responsible for the obligations and finances of the company.
“See, he doesn’t run the company, he is a mere shareholder. The point I’m trying to make is crystallised here. You are aware of these provisions I pointed out to you?” Shafee asked.
Hazem then agreed that he was aware of the provisions, based on his reading of the company’s constitution today, but said he did not know them in detail previously.
Shafee then continued to insist that Hazem would have known he could turn down Najib’s requests on 1MDB, but Hazem only accepted that this would be true only on paper based on the 1MDB company constitution and would not be feasible in reality.
Shafee asked: “You should know as CEO. Doesn’t this Article tell you, assuming the shareholder MOF Inc, which the PM being minister of finance would be the alter ego, if he tells you something wrong and you think ‘hey, this is not right with the company’, you are not supposed to obey his instructions, because that’s against the interest of the company?”
Hazem then cited the company constitution of 1MDB: “Based on this, yes.”
Shafee: You can only base on this M&A? It is your company’s constitution.
Hazem: Based on the M&A, yes. But based on real life, the shareholder is the government and the shareholder running the show is the PM, that’s a different story. – MMO
Earlier reports:
Sept 17, 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
Sept 2, Najib’s 1MDB Trial: Day 46
Sept 1, Najib’s 1MDB Trial: Day 45
Aug 17, Najib’s 1MDB Trial: Day 44
Aug 5, Najib’s 1MDB Trial: Day 43
Aug 4, Najib’s 1MDB Trial: Day 42
Aug 3, Najib’s 1MDB Trial: Day 41
Jul 17, Najib’s 1MDB Trial: Set to Last Until at Least June 2021
Jul 16, Najib’s 1MDB Trial: Day 39
Jul 15, Najib’s 1MDB Trial: Day 38
Jul 1, Najib’s 1MDB Trial: Day 37
Jun 30, Najib’s 1MDB Trial: Day 36
May 21, Najib’s 1MDB Trial: Day 35
May 21, Najib’s 1MDB Trial: Day 34
May 19, Najib’s 1MDB Trial: Day 33
Nov 11, Najib’s 1MDB Trial: Day 32
Nov 7, Najib’s 1MDB Trial: Day 31
Nov 6, Najib’s 1MDB Trial: Day 30
Nov 5, Najib’s 1MDB Trial: Day 30
Nov 4, Najib’s 1MDB Trial: Day 28
Nov 4, 1MDB Trial: Judge Reprimands Najib After Tg Piai Trip
Oct 31, Najib Calls in Sick with Swollen Eyes, 1MDB Trial Postponed Yet Again
Oct 30, Najib’s 1MDB Trial: Day 27
Oct 29, Najib’s 1MDB Trial: Day 26
Oct 24, Najib’s 1MDB Trial: Day 25
Oct 24, Najib Asks Prosecution to Hand Over Justo’s Information Given to MACC
Oct 21, Najib’s 1MDB Trial: Day 24
Oct 17, Najib’s 1MDB Trial: Day 23
Oct 17, Jho Low Changed 1MDB Constitution to Give Najib Absolute Power
Oct 16, Najib’s 1MDB Trial: Day 22
Oct 14, Najib’s 1MDB Trial: Day 21
Oct 10, Najib’s 1MDB Trial: Day 20
Oct 9, Najib’s 1MDB Trial: Day 19
Oct 8, Najib’s 1MDB Trial: Day 18
Oct 7, Najib’s 1MDB Trial: Day 17
Oct 7, Some Umno People Envious of Jho Low-Najib Ties, Court Told
Oct 1, Najib’s 1MDB Trial: Day 16
Oct 1, Arul Kanda Told Ex-1MDB CEO to Leave Country to Avoid PAC Meeting
Oct 1, Ex-1MDB CEO Paid RM99K Monthly, RM1.5M Bonus
Oct 1, Jho Low Helped Plan Abu Dhabi Crown Prince’s Trip to Sway Voters for GE13
Sept 30, Najib’s 1MDB Trial: Day 15
Sept 30, Witness: Najib Used 1MDB to Raise Funds for GE13
Sept 26, Najib’s 1MDB Trial: Day 14
Sept 26, Jho Low, Tim Leissner Played “Matchmaker” for Najib to Meet Goldman Sachs
Sept 26, US$9M Transferred from Jho Low’s Good Star to Riza Aziz’s Red Granite Pictures
Sept 26, Jho Low, Najib Faked Meeting Minutes to Move US$750M from 1MDB to PSI
Sept 26, Najib Agreed to 1MDB Borrowing RM3B from SOCSO to Lend to PetroSaudi
Sept 25, Najib’s 1MDB Trial: Day 13
Sept 24, Najib’s 1MDB Trial: Day 12
Sept 23, Najib’s 1MDB Trial: Day 11
Sept 19, Najib’s 1MDB Trial: Day 10
Sept 18, Najib’s 1MDB Trial: Day Nine
Sept 18, Najib’s Ex-Aide Led MACC to Raid on Jho Low’s Apartment
Sept 18, Najib’s 1MDB Trial Halted Briefly for Najib to See Eye Specialist
Sept 17, Najib’s 1MDB Trial: Day Eight
Sept 17, Witness Identifies Riza Aziz, Arul Kanda and Five Others as Key Players in 1MDB Saga
Sept 17, Bono, Queen of Jordan, Rosmah Floated as Trustees for TIA
Sept 17, Witness Says 1MDB Najib’s Baby, Defence Claims It Was Terengganu Sultan’s Idea
Sept 11, Najib’s Eye Infection Halts 1MDB Trial
Sept 10, Najib’s 1MDB Trial: Day Six
Sept 10, Rosmah Fond of Jho Low
Sept 10, Najib’s Ex-Aide: Jho Low Provided Scripted Responses to Deny His Involvement in 1MDB
Sept 10, Istana Negara Questioned Jho Low’s Role in 1MDB Predecessor TIA
Sept 5, Najib’s 1MDB Trial: Day Five
Sept 5, 1MDB Trial: Judge Raps Shafee over Najib’s Tardiness
Sept 5, 1MDB Trial: Najib’s Ex-Aide Took US$200K Loan from Jho Low to Buy Property
Sept 5, 1MDB Trial: Najib’s Ex-Aide Accused of Lying
Sept 4, Najib’s 1MDB Trial: Day Four
Sept 4, Najib’s Ex-Aide: Mudabala CEO Was Promised All Sorts of Things
Sept 4, Najib’s Ex-Aide, Jho Low on “Secret China Mission” to Bail Out 1MDB
Sept 4, Jho Low Ordered Najib’s Ex-Aides to Open Overseas Bank Accounts
Sept 3, Najib’s 1MDB Trial: Day Three
Sept 3, Najib’s Ex-Aide: Jho Low Drew Out Wealth Fund Concept on Kitchen Whiteboard
Sept 3, Jho Low Gave Possibly Forged Letters from Saudi Arabia to Stop 1MDB Probe
Sept 3, Only Najib and Jho Low Knew “Full Picture” of 1MDB Plan
Sept 3, Jho Low in Najib’s Inner Circle
Aug 29, Najib’s 1MDB Trial: Day Two
Aug 28, Najib’s 1MDB Trial: Day One
Aug 28, Shafee: Prove Najib Knew Arab Donation Letter Faked, Jho Low Is Najib’s Alter Ego
Aug 28, Najib’s 1MDB Trial: Shafee Again Questions Sri Ram’s Appointment
Aug 28, Najib’s 1MDB Trial: Gopal Sri Ram’s Full Opening Statement
Aug 28, Najib’s 1MDB Trial: Prosecution to Show Saudi Donations a Sham
Aug 28, Najib’s 1 MDB Trial: Prosecution to Prove Jho Low Was Najib’s Alter Ego
Aug 28, Najib’s 1MDB Trial Begins