NAJIB HAD THE AUTHORITY TO REJECT 1MDB FINANCIAL DECISIONS, COURT TOLD

PUTRAJAYA, April 8 (Bernama) -- The High Court was told today that Datuk Seri Najib Tun Razak had the authority to reject any financial decisions made by the board of directors of 1Malaysia Development Berhad (1MDB).

Former head of Bukit Aman’s Commercial Crime Investigation Department (CCID) R. Rajagopal said this is because any decision with major implications on the country’s economy had to be referred to Najib in his capacity as the prime minister.

The 11th defence witness said this during re-examination by Najib's counsel Tan Sri Muhammad Shafee Abdullah at the former premier’s trial for the alleged misappropriation of RM2.3 billion in 1MDB funds.

Muhammad Shafee: What happens if he refuses? 

Rajagopal: In the 1MDB memorandum and articles of association (M&A), anything that has implications for the country must be brought up to the prime minister for his approval or sanction. If he refuses, it will have to go back to the board of directors and the shareholder. They have to satisfy the shareholder as to why they need the approval.

During the course of the trial, it has to be noted that Najib held three key roles in the sovereign wealth fund, namely as the sole shareholder in his capacity as Finance Minister (as 1MDB was a company under the Minister of Finance Incorporated); the chairman of the 1MDB Board of Advisors (BOA); and the Prime Minister at the time.

Further questioned by Muhammad Shafee, Rajagopal said that over his investigation of many years into 1MDB, there was no direct evidence to show that Najib had instructed for the company's funds to be used for his personal benefit.

The retired police officer said he had not come across any direct evidence indicating that Najib had directed where the money should go, however, he explained that based on the company’s M&A, any transaction must be decided by the board of directors and approved by the shareholder.

He also added that during his investigations, which he took over in September 2015, neither he nor his team received any instructions to withhold or delay the 1MDB investigations.

On Oct 30 last year, Judge Datuk Collin Lawrence Sequerah ordered Najib to enter his defence after ruling that the prosecution had established a prima facie case against him.

Najib, 71, faces 25 charges, including four counts of abusing his position to accept RM2.3 billion in bribes from 1MDB funds and 21 charges of money laundering involving the same amount.

The hearing continues tomorrow. 

-- BERNAMA