Crime & Courts

Najib instructed Terengganu Investment Authority to proceed with issuance of bond despite ruler ordering for its suspension

KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak instructed the Terengganu Investment Authority (TIA) to proceed with the issuance of a RM5 billion bond, despite the suspension order issued by the then Yang di-Pertuan Agong Sultan Mizan Zainal Abidin in 2009.

Sultan Mizan is Terengganu's sultan.

Malaysian Anti-Corruption Commission (MACC) senior officer Nur Aida Arifin said Najib and fugitive businessman Low Taek Jho or Jho Low then instructed TIA's top brass to proceed with the issuance of Islamic medium-term notes (IMTN).

Established in 2009 as an entity owned by the Terengganu government, the TIA was later renamed as 1Malaysia Development Bhd (1MDB).

Nur Aida also confirmed that TIA via its directors' circular resolution (DCR) on April 8, 2009, appointed Low as one of TIA advisors.

She said this when testifying as the 49th prosecution witness in Najib's corruption trial for allegedly misappropriating millions of funds belonging to 1MDB.

Nur Aida when recounting the establishment of TIA said the idea was presented by Low during a hi-tea event at the Terengganu Palace near Jalan Kia Peng here on Dec 10, 2008.

The meeting was attended by Sultan Mizan, his sister Tengku Datuk Rahimah Sultan Mahmud, her husband Datuk Abdul Aziz Mat Akhir, then Terengganu Menteri Besar Datuk Seri Ahmad Said and Najib who was then the deputy prime minister and finance minister.

"After the presentation, Sultan Mizan expressed satisfaction and instructed Ahmad to convene a special state executive council meeting to establish a state investment company.

"On Feb 27, 2009, TIA was officially established and registered as a company.

"Low and Casey Tang Keng Chee informed the company that there was a proposal by the federal government to provide a government guarantee of RM5 billion through the issuance of IMTN.

"TIA's then chief executive officer Datuk Shahrol Azral Ibrahim Halmi on March 27, 2009, sent a letter of application to Najib to obtain a government guarantee (GG) for the issuance of IMTN for a period of 30 years.

"On May 15, 2009, the government issued a GG to TIA for the issuance of RM5 billion worth of IMTN, which was issued by AmTrustee Berhad," she said.

She said however, Sultan Mizan ordered the suspension on the issuance of IMTN after he found that several clauses in the agreement were not favourable to TIA.

"After receiving the decree from Sultan Mizan, TIA chief executive officer Datuk Shahrol Azral Ibrahim Halmi and managing director Tan Sri Ismee Ismail contacted and sought opinions from Low.

"On the same day, the duo met Najib at his residence in Langgak Duta as directed by Low. The rogue financier also presents during the meeting.

"In that meeting, Najib informed the duo that he would discuss the matter with Sultan Mizan and to proceed with the issuance of IMTN.

"On May 29, 2009, AmInvestment Bank directed AmBank to transfer a sum of RM4.38 billion to TIA's account at RHB Islamic and AmIslamic," she said.

Nur Aida said Sultan Mizan then ordered the establishment of an oversight committee to discuss the issues related to the issuance of IMTN bonds and the position of the Terengganu state government within TIA.

She said on July 8, 2009, the Cabinet meeting chaired by Najib agreed for the federal government to take over TIA and renamed it as 1MDB.

Najib, 70, is facing 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 presiding judge Datuk Collin Lawrence Sequerah continues.

Most Popular
Related Article
Says Stories