The Malaysian Insight

FORMER 1Malaysia Development Bhd (1MDB) chief financial officer Azmi Tahir today denied receiving bribes from ex-Goldman Sachs Southeast Asia chairman Tim Leissner for his part in helping the Malaysian state investment firm raise US$1.75 billion in bonds.

Azmi revealed this in the Kuala Lumpur High Court during the graft trial of former prime minister Najib Razak involving RM2.28 billion of 1MDB funds when questioned by defence lawyer Tania Scivetti, who suggested that a sum of US$4 million had served as bribes to 1MDB officials, including Azmi.

Other officials, Najib’s lawyer said, included then 1MDB chief executive officer Shahrol Azral Ibrahim Halmi, then chief operating officer Mohd Hazem Abdul Rahman as well as Leissner.

The US$4 million cash was paid to Goldman Sachs for its role as 1MDB’s financial adviser, besides another US$130 million for arranging the bonds.

“The reason why Shahrol agreed to cash being the mode of payment (to Goldman Sachs for its financial advice) was to avoid a digital footprint being made between you, Shahrol, Hazem and other 1MDB officials, Goldman and Leissner,” Scivetti said to Azmi.

Azmi disagreed with the lawyer. He said he also never questioned why the interest rate was so high, as it had been decided by Shahrol.

“I disagree for myself, but I don’t know about the others,” he said.

Azmi also said he knew that Leissner had been charged by the US Department of Justice for bribing Malaysian and Abu Dhabi officials to obtain lucrative deals for Goldman Sachs.

Leissner pleaded guilty for his role in the scandal in 2018.

Goldman Sachs had helped 1MDB Energy (Langat) Ltd raise US$1.75 billion in bonds with an interest rate of 5.75% over 10 years.

Apart from the bond, 1MDB also took a RM700 million loan from Affin Investment Bank and AmIslamic.

The bonds were raised to facilitate the acquisition of Mastika Lagenda, which held a 75% stake in Genting Sanyen Power Sdn Bhd. 1MDB had agreed to pay RM2.75 billion for the acquisition. 

Azmi said the facility arrangement was spearheaded by 1MDB’s legal adviser, Jasmine Loo, and Terence Geh, who was the company’s director of finance. Both of them were close associates of businessman Low Taek Jho, considered the 1MDB mastermind.

Scivetti put it to Azmi that he did not negotiate for a lower interest rate because he knew he would be remunerated for carrying out Low’s instruction.

Low, she said, had made arrangements for Leissner, Azmi, Shahrol and Hazem to be remunerated for carrying out his instruction.

“Your inaction to negotiate enabled Goldman to profit from 1MDB and, in return, Leissner and Goldman paid bribes to 1MDB officials, including you, Shahrol and Hazem,” Scivetti said.

Azmi disagreed with this statement.

He also said neither he nor Geh asked other financial institutions to put in their proposals to help 1MDB raise the funds required for the Mastika Lagenda acquisition.

Najib is standing trial for graft involving RM2.28 billion in 1MDB funds. He faces 25 charges – four for abuse of power and 21 for money laundering – for offences committed between 2011 and 2013.

The case is being heard before judge Collin Lawrence Sequerah. – January 27, 2022.