The Malaysian Insight

A REPRESENTATIVE from the Attorney-General’s Chambers advised a high-powered meeting in 2016 to remove portions of the 1MDB audit report before it was presented to the Public Accounts Committee (PAC), the High Court in Kuala Lumpur heard today.

That representative was today named as Dzulkifli Ahmad, who later was appointed Malaysian Anti-Corruption Commissioner (MACC) chief commissioner.

Dzulkifli was among nine officials present at a February 24, 2016 meeting chaired by then Chief Secretary Ali Hamsa, which was convened on instructions by then prime minister Najib Razak to resolve “certain issues” in the auditor-general’s 1MDB audit report.

Najib is accused of using his position to remove parts of the final 1MDB audit report between February 22 and 26, 2016 at the Prime Minister’s Department before it was tabled to the PAC to protect himself from criminal action.

Former 1MDB CEO Arul Kanda Kandasamy is also on trial for abetting the former prime minister.

Present at the February 24 meeting were Ali, his senior private secretary Norazman Ayub, Arul Kanda, Dzulkifli, the then auditor-general Ambrin Buang and Saadatul Nafisah of the National Audit Department, Treasury representatives Mohamad Isa Hussain and Asri Hamdin.

Shukry Mohd Salleh, a representative from the Prime Minister’s Office was also present.

Ali testified today that among the matters discussed at the meeting was the removal of any mention of a delay in the issuance of the RM5 billion in Islamic Medium-Term Notes (IMTN) with the government guarantee.

The delay was approved by the Yang di-Pertuan Agong after Najib met with him on May 27, 2009.

Shukry then asked whether Najib was duty bound to report the consented delay to the cabinet.

Arul Kanda opted to remove mention of the delay, saying it was a business decision, while Ambrin was unsure about the procedures involved in the IMTN issuance delay, Ali testified.

“I sought legal advice from Dzulkifli Ahmad, a representative from AGC who was present at the said meeting.

“Dzulkifli informed me that the delay in issuance of the IMTN was a business decision and was not necessary to be raised at the cabinet meeting.

“Taking into account the explanation from the AGC representative, Ambrin Buang agreed to have that issue removed,” Ali said.

Dzulkifli was appointed as MACC chief commissioner on August 1, 2016 and resigned from the post on May 14, 2018, five days after Pakatan Harapan swept into power.

When examined by senior deputy public prosecutor Gopal Sri Ram, Ali confirmed that during the period the meeting was held, Abu Kassim Mohamed was the MACC chief.

The 64-year-old witness said Abu Kassim was transferred elsewhere later.

“Abu Kassim wanted to take leave because of his backache. He wanted to be placed somewhere else, so we placed him in UiTM,” Ali said.

In his witness statement, Ali testified that there were four issues, which were agreed would be removed from the 1MDB audit report.

They were: the two conflicting versions of the 1MDB financial statements for the year 2014; the agreement between Country Groups Securities Thailand and Acme Time Ltd, the presence of Low Taek Jho and the delay in the 1MNT issuance.

Regarding Low, commonly known as Jho Low, Ali said the National Audit Department had found that Low did not hold any position nor played any role in 1MDB.

“Therefore, his presence in the said report was viewed as a red flag.

“Shukry Mohd Salleh requested for this to be removed from the 1MDB audit report taking into account the sensitivity of the matter and to prevent it from being manipulated by the opposition party at that point of time,” Ali testified.

“Ambrin agreed that it should be removed.”

Najib and Arul Kanda sat in the dock today. They were represented by lead defence counsel Muhammad Shafee Abdullah and N. Sivanathan, respectively.

Both pleaded not guilty when charges were filed against them on December 18, 2018.

The trial, before Kuala Lumpur High Court judge Mohamed Zaini Mazlan, continues. – November 19, 2019.