The Malaysian Insight

FORMER second finance minister Ahmad Husni Hanadzlah did not want to get involved in 1Malaysia Development Bhd, a former ministry official testified in High Court today.

Siti Zauyah Mohd Desa, former deputy secretary-general of the Finance Ministry, said this during cross-examination by Shafee Abdullah, lawyer of former prime minister Najib Razak, this morning.

The lawyer made reference to Siti Zauyah’s witness statement that three of 1MDB’s memorandums and articles of associations (M&A) were unusual and did not appear in any other Minister of Finance Incorporated (MOF Inc) companies.

Siti Zauyah, 63, now retired, had made mention of three M&As – clauses 117, 68 and 93.

“Did you escalate this matter to anyone?” Shafee asked Siti Zauyah.

The witness said she did, to then secretary-general Mohd Irwan Serigar Abdullah and to Hasni.

“I discussed it with the sec-gen and he told me not to do anything,” she told the court.

“The matter also went up to Husni. He told me that he didn’t want to get involved.”

The 26th prosecution witness, who was attached to the Loans Management, Financial Market and Actuary Division (BPKA) at the Finance Ministry, however, said she does not remember if she had written a report on the meeting or whether it was just a conversation.

Clause 117 gave the prime minister the power to appoint the board of directors and chairman, and over financial commitments in 1MDB.

Clause 68 allowed for 1MDB’s board of directors (BOD) to appoint directors but it must be formalised by written approval by the PM.

Clause 93 allows for the formation of a board of advisors (BOA) to advise the BOD should they call upon them.

Husni, when he testified earlier this month, said he did not know in detail what he was signing after he was told by Najib to get involved in 1MDB matters.

He had also testified at the SRC International trial and compared his role to that of an office boy.

Shafee then showed Siti Zauyah the special resolution from the Terengganu Investment Authority (TIA) which was signed by Husni and contained all three clauses.

When TIA was federalised and taken over by MOF Inc in September 2009, the resolution in its entirety was “copy-pasted” to 1MDB.

“This document, the special resolution, was produced by the prosecution. Did you notice who signed it?” Shafee asked the witness.

“The second finance minister on August 11, 2009 signed this. When you said Husni did not want to get involved, are you sure of the fact of the date, he approved this?”

Siti Zauyah said she didn’t know about the special resolution signed by Husni.

This then caused a back-and-forth to ensue between the duo on how the witness could not have known something so pertinent while Siti Zauyah vehemently denied having ever seen any of the document presented to her.

Siti Zauyah also said that she was not aware of a clause in 1MDB which allowed for the MOF Inc to appoint 25% of the company’s board of directors.

The government guarantee for TIA to publish a RM5 billion Islamic medium-term loan (IMTN) in 2009 gave the federal government one special share with the right to appoint 25% of the BOD and to attend all meetings.

The document was signed by Siti Zauyah’s then superior, Wan Abdul Aziz Wan Abdullah.

“This is signed by my secretary-general, it was never sent down to my division. I don’t know my capacity then at this date, I may not have access and view of this document. I’m seeing it for the first time, it never came to MOF Inc,” she told the court.

She also said that she did not receive the entirety of 1MDB’s M&A despite saying so in her witness statement.

“Don’t be ridiculous. It is all one document (M&A), it doesn’t come one by one, but now you say you only received 117,” Shafee said, to which she replied that she passed the document to the treasury solicitor.

“Did someone tell you to highlight 117? Why didn’t you highlight other parts?” the lawyer reiterated.

Siti Zauyah said that was what she and the treasury solicitor noticed during their discussion.

Najib is standing trial at the Kuala Lumpur High Court for corruption over the misappropriation of RM2.28 billion of 1MDB funds.

He faces 25 charges, four for abuse of power and 21 of money laundering, allegedly committed between 2011 and 2013. – Bernama, June 20, 2022.