The Malaysian Insight

NATIONAL Audit Department (NAD) director Nor Salwani Muhammad today testified that she was shocked to learn top officials were working to remove portions of the 1Malaysia Development Bhd audit report.

During examination by senior deputy public prosecutor Gopal Sri Ram, she described the meeting of the officials as “abnormal”.

Salwani, 52, is the fifth prosecution witness in former prime minister Najib Razak and ex-1MDB chief executive Arul Kanda Kandasamy’s joint 1MDB report-tampering trial.

She told the Kuala Lumpur High Court that she had surreptitiously placed a recording device in a pencil case belonging to NAD audit director Saadatul Nafisah Bashir Ahmad, who attended the said meeting.

Salwani said she was not invited to the meeting as she was not considered a high-ranking official.

Sri Ram: After the meeting, did you retrieve the recording device?

Salwani: As soon as Saadatul Nafisah left the meeting, I took the device from her pencil case. I turned it off and went back to my office with my audit team, and we met the other members. We listened to the recording to know what actually happened at the meeting.

Listening to the recording, we were shocked at what happened at the meeting. I later copied the audio to the department’s official hard disk.

Sri Ram: Why were you shocked?

Salwani: We were shocked at what happened. What was reported in the Auditor-General’s Report… there were requests for them to be taken out. There were requests that they not be mentioned in the report.

Sri Ram: In your 21 years with the department, how many exit conferences (meetings between auditors and clients to discuss the former’s findings and recommendations) have you attended?

Salwani: Each year, more than 20 times.

Sri Ram: Have you ever, in your experience, had an event that occurred on February 24, 2016?

Salwani: It never happened. That was why we were shocked.

Sri Ram: How would you describe this event, normal or abnormal?

Salwani: Abnormal.

The two-hour recording, played in its entirety by the prosecution yesterday, showed how officials sought to remove portions of the 1MDB report before presenting it to Parliament.

Nine officials were present at the meeting: Arul Kanda, then auditor-general Ambrin Buang, then chief secretary to the government Ali Hamsa, Ali’s senior private secretary Norazman Ayub, Saadatul Nafisah, Attorney-General’s Chambers representative Dzulkifli Ahmad, Treasury representatives Mohamad Isa Hussain and Asri Hamdin, and Najib’s principal private secretary Shukry Mohd Salleh.

During examination-in-chief, Salwani explained why she recorded the meeting.

“I put the recording device in Saadatul Nafisah’s pencil box because I needed to take down the minutes of the meeting.”

Sri Ram: You went into the room, but you were not allowed to stay?

Salwani: Yes.

Sri Ram: Why did you need to take down the minutes of the meeting?

Salwani: It is regarding our audit. I am the co-coordinator, and I should take down the minutes.

Sri Ram: For that purpose, you placed a recording device in Saadatul Hanifah’s pencil box?

Salwani: Yes.

Sri Ram: To your knowledge, did Saadatul Hanifah know that there was a recording device in her pencil box?

Salwani: She didn’t know.

The witness said she transferred the copy of the recording on NAD’s official hard disk to a personal one, as well as a pen drive, for fear of “leakage of information”.

She said she then cleared the official hard disk.

The personal hard disk was subsequently damaged during a move, causing the data to be lost, leaving Salwani with just the pen drive, the court heard.

She showed the recording device, saying it belonged to NAD. It was later surrendered to an investigating officer, but Salwani did not say when this occurred.

She was then questioned on Ambrin’s demeanour after the meeting.

Salwani: He looked upset by what happened. He appeared sad and upset, and he was mumbling something. I followed him to the washroom because he wanted to wash his face.

Sri Ram: Why did you have to do that?

Salwani: I was afraid he would fall down. He looked fragile at the time.

Sri Ram: Did he say anything to you?

Salwani: He was mumbling, asking what was the purpose of the audit.

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 Public Accounts Committee, to protect himself from criminal action.

Arul Kanda is on trial for abetting the former prime minister.

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

The trial, before judge Mohamed Zaini Mazlan, continues. – November 21, 2019.