Former Malaysian Prime Minister Najib Denies Being Involved In The 1MDB TIA Corruption Allegation Case Worth RM2.3 Billion

Illustration of alleged corruption cases. (Between-HO)

JAKARTA - Former Malaysian Prime Minister (PM) Najib Tun Razak denied being involved in the corruption case of the distribution of funds from the Terengganu Investment Authority (TIA) to 1Malaysia Development Berhad (1MDB) which was estimated to have cost the country RM2.3 billion.

Testifying at the Malaysian High Court, Tuesday, November 3, Najib admitted that he had never discussed the flow of TIA funds to 1MDB with former Finance Minister Tan Sri Nor Mohamed Yakcop or the suspects who were still at large, namely Low Taek Jho or Jho Low businessmen.

According to Najib, he consistently supports the TIA to remain under Terengganu's control.

"During the cabinet meeting on June 17, 2009, I told the Cabinet that the Ministry of Finance preferred the second option, namely the Minister of Transportation Incorporated (MBTI) to carry out full control of the TIA with guarantees from the Federal government," he said at the hearing, quoted by Bernama.

"If Jho Low really conspired with me to ensure that the TIA evolved to 1MDB and if there is any discussion on this issue between me, Jho Low, and Tan Sri Nor Mohamed in the past, then there is no need for such complicated letters to try to convince me and him (Nor Mohamed) to agree to develop the TIA into 1MDB," continued Najib.

Najib defended four allegations of abuse of power involving 1MDB funds worth RM2.3 billion and 21 charges of money laundering involving the same amount.

On October 30, Chief Judge Collin Lawrence Sequerah ordered Najib to file his defense of 25 charges addressed to the former Malaysian Prime Minister.

The order of the panel of judges followed the prosecutor's name Najib in the fatie prime case against him.

Previously, Najib explained that the idea of TIA federalization emerged after his then chief executive, Shahrol Azral Ibrahim Halmi, wrote a letter to him and Nor Mohamed on May 25, 2009, highlighting the internal conflict between TIA and MBTI management.

In the letter, Shahrol Azral proposed converting the TIA into 1MDB, which was modeled based on the Abu Dhabi state wealth fund, Mubadala.

"I just found out during this trial that the letter was designed by Shahrol Azral and Jho Low at his residence. Shahrol Azral believes there has been discussions between me, Nor Mohamed, and Jho Low regarding the conversion of the TIA to 1MDB, which places him under the Federal government," Najib claimed.

"I can't remember this letter specifically, because there was no confession from me or my office, no notification from me, and it wasn't shown to me during the investigation. If I received this letter at the time, I would assume that Datuk Shahrol had prepared it, because he was the signing. I wouldn't know that Jho Low was helping Shahrol in compiling it," he said.

Najib admitted that Shahrol Azral acted strangely with his claim during the trial that he had delegated the preparation of a letter to Jho Low, solely based on the alleged close relationship between them.

"If my relationship with Jho Low is that close, then Shahrol Azral, who has the authority to recruit management personnel, should appoint Jho Low as his assistant or consultant, and in this way, Jho Low will be officially authorized to draft and sign letters, without making me believe that Shahrol Azral himself is the author," said Najib.

"In addition, because the reason Shahrol Azral allowed Jho Low to compile the letter was my alleged close relationship with Jho Low, it would make the same sense for me to assume that Shahrol Azral, who owed his best friend and client (Jho Low), allowed Jho Low to arrange various things according to his wishes, even if it meant misleading me, the Prime Minister and Minister of Finance at the time," he continued.