The Malaysian Insight

FORMER prime minister Najib Razak said he was the recipient of a personal donation amounting to US$800 million (then RM2.4 billion) from Saudi Arabia’s late King Abdullah Abdulaziz Al Saud in 2013, the high court heard last week.

Najib also denied he had total control of SRC International Sdn Bhd and maintained he was not fully aware of its operations as he read from his 243-page defence statement.

He faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power.

His charges are linked to RM4 billion in loans issued to SRC International in 2011 and 2012, for which he is accused of receiving RM42 million in his accounts in 2014 and 2015.

Najib told the court he believed the donations came about because King Abdullah was impressed with Malaysia’s moderate Islam.

He said businessman Low Taek Jho, better known as Jho Low, organised meetings between him and King Abdullah in Riyadh and Jeddah in 2010.

Najib referred to a letter dated March 1, 2013, said to be from a legitimate representative of King Abdullah, stated the former prime minister was allowed to spend the money at his “absolute discretion”.

“King Abdullah recognised that there would be a general election in 2013. Basically, he did not want the ill-effects of the Arab Spring to spread to Malaysia, especially as he had a positive view of how Malaysia appeared to be a prime example of a country that practised the true meaning of Islam,” he said.

Najib said he believed the donation was channelled through the Tanore Finance Corp, which he was told was linked to the Saudi king.

He testified he only learnt of the Tanore transactions when he was questioned by the Malaysian Anti-Corruption Commission in 2018 and after his lawyers obtained banking documents from AmBank, which held the current account ending with “694”.

Najib said he had never had a personal or financial interest in SRC International.

He also denied he had purview over the SRC International board’s every decision.

He disputed previous testimonies by former SRC International chairman Ismee Ismail and former director Suboh Md Yassin that former CEO Nik Faisal Ariff Kamil was the middleman between Najib and SRC International. 

He also denied giving a “veiled direction” to former Retirement Fund Inc chairman Wan Abdul Aziz Wan Abdullah to expedite a RM2 billion loan to SRC International in 2011.

Najib was responding to testimony by Wan Abdul Aziz in July that he allegedly wanted the loan expedited, remarking that “RM2 billion was sufficient”.

SRC International initially applied for a RM3.95 billion loan in 2011.

Of the sum requested, RM2 billion was approved and the government entity then requested another RM2 billion the following year.

Najib then denied treating former second finance minister Ahmad Husni Hanadzlah like an “office boy”, as the witness claimed in August.

Najib told the Kuala Lumpur High Court that he believed Ahmad Husni held a grudge against him after being transferred from the Finance Ministry to the Economic Planning Unit, which resulted in Ahmad Husni resigning in 2016.

On his relationship with Low, Najib said he knew of the Penang-born businessman in 2007 through his step-son Riza Shahriz Abdul Aziz. 

Najib described Low as having influence and good connections with the royalty and developers in the United Arab Emirates and Saudi Arabia, and was able to organise meetings and discussions with such people.

“This formed the basis of my confidence in Jho Low to get investments from investment bodies from the UAE and Saudi Arabia.”

Najib said he knew Low to be closely acquainted with the Yang di-Pertuan Agong when 1MDB’s precursor Terengganu Investment Authority (TIA) was formed in 2009.

He said Low was a close acquaintance of Sultan Mizan Zainal Abidin of Terengganu, who was the then Agong.

Najib is about two-thirds through his witness statement.

He will be cross-examined by the prosecution led by Attorney-General Tommy Thomas.

The trial, before judge Mohd Nazlan Mohd Ghazali, resumes tomorrow. – December 8, 2019.