KUALA LUMPUR: The Cabinet unanimously agreed to approve a letter of support for the issuance of US$3 billion in bonds by 1Malaysia Development Bhd (1MDB)'s subsidiary 1MDB Global Investment Bhd (1MDB GIL) in 2013.
Malaysian Anti-Corruption Commission (MACC) senior officer Nur Aida Arifin said the then prime minister Datuk Seri Najib Razak had attended a Cabinet meeting on March 13, 2013, where he presented a memo seeking ministerial approval.
She said this when testifying under cross-examination by Najib's counsel Wan Azwan Aiman Wan Fakhruddin in the Najib's corruption trial for misappropriating millions of funds belonging to the sovereign state fund.
Nur Aida also agreed with Wan Azwan Aiman's suggestion that Najib was merely performing his duties as the then finance minister and had no personal interest in the issuance of the bonds.
Wan Azwan Aiman: My client's action of highlighting the risks associated with the bond issuance proved that he did not have any personal interest in the matter.
Nur Aida: I disagree.
Wan Azwan Aiman: If my client had a personal interest in this bond issuance, he should have secured a much larger amount, twice the stated sum of US$3 billion.
Nur Aida: I disagree.
Nur Aida, when testifying on Jan 24, this year, said the funds (US$3 billion) were raised by Goldman Sachs through a bond issuance to develop the Tun Razak Exchange (TRX) project between 1MDB and Aabar Investment PJS.
"On March 19, 2013, the proceeds of the US$3 billion note issuance were finalised and transferred to the 1MDB GIL account at BSI SA, Lugano, Switzerland, with a total amount of US$ 2,721,000,000," she said.
She said 1MDB former chief executive Mohd Hazem Rahman had made several requests to Najib to bring back these funds home to finance the needs of 1MDB, but was rejected by fugitive businessman Low Taek Jho or Jho Low.
She said Low gave instructions that these funds should not be repatriated because they were intended for the use of Umno's election funds.
"Hazem had conveyed this matter to Najib's former principal private secretary Datuk Azlin Alias and 1MDB's chairman Tan Sri Che Lodin Wok Kamaruddin to bring the matter to Najib's attention.
"However, Najib did not permit the repatriation of these funds, and no clear reason was provided," she said.
On Nov 18, 2021, former 1MDB non-executive director Tan Sri Ismee Ismail when testifying in the same trial revealed that the government had issued a letter of support acknowlegeding that 1MDB GIL would be raising USD$3 billion via a bond issuance which was to be paid in full in March 2023.
The letter dated March 14, 2013, was signed by Najib, who was also the finance minister at that time.
He said the letter had reflected the government's strong support to repay the USD$3 billion bond with interests.
He also pointed out that the letter of support was issued rather expeditiously as the fundraising exercise was approved on March 12, 2013, while the letter was issued only two days after.
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.
Hearing before presiding judge Datuk Collin Lawrence Sequerah continues.