KUALA LUMPUR: The High Court today heard that one of fugitive businessman Low Taek Jho's associates was an authorised signatory of a 1Malaysia Development Bhd (1MDB) subsidiary despite not holding any position in it.
This was revealed by 1MDB chief executive officer (CEO) Mohd Hazem Abdul Rahman, 49, during the trial of former prime minister Datuk Seri Najib Razak over the misappropriation of RM2.28 million of 1MDB funds.
Hazem said in 1Malaysia Development Bhd Global Investment Limited (1MDB GIL), 1MDB chief financial officer Azmi Tahir and him were the appointed authorised signatories as they held the director position in the 1MDB subsidiary.
During cross-examination by Najib's counsel Wan Aizuddin Wan Mohammed, Hazem confirmed that apart from him and Azmi, former 1MDB executive director Terence Geh was also appointed as an authorised signatory for 1MDB GIL.
This was despite Geh not holding any position in 1MDB GIL.
Asked by Wan Aizuddin why was Geh appointed as an authorised signatory in the company, Hazem said he had no idea.
Wan Aizuddin: Can you remind us again why Geh was appointed as an authorised signatory despite not being a director of the company?
Hazem: I don't know the reason.
Wan Aizuddin: Do you agree, by right, as a member of management, the appointment of an authorised signatory will give him dominion over the company's property?
Hazem: Yes.
Wan Aizuddin: Shouldn't the board of directors be briefed first about his appointment (as the signatory)?
Hazem: I am not sure if the board should approve first in 1MDB GIL.
Hazem had in his witness statement said that Geh was appointed by Low or better known as Jho Low, as an authorised signatory to the account of 1MDB GIL.
The trial continues before High Court judge Colin Lawrence Sequerah tomorrow.
Najib, 68, is charged with 25 counts of abuse of power and money laundering involving RM2.28 billion of 1MDB funds which were deposited into his accounts between 2011 and 2014.
He faces 20 years' jail and fine, if convicted.