1MDB admits no monies, no investment after RM15 mln fine - Zeti

KUALA LUMPUR: Former Bank Negara Malaysia (BNM) Governor Tan Sri Dr Zeti Akhtar Aziz today told the High Court here that 1Malaysia Development Berhad (1MDB) admitted that there were no monies and no investment after the central bank imposed a fine amounting RM15 million against the company.

Zeti, 76, who revealed the matter said the inability of 1MDB to bring the monies back and to provide evidence on the status of the funds, resulted in a compound being imposed on the sovereign wealth fund.

According to the 46th prosecution witness, 1MDB paid the compound on May 25, 2016.

Zeti said this when asked by Datuk Seri Najib Tun Razak's lead counsel Tan Sri Muhammad Shafee Abdullah at the former premier's trial involving the misappropriation of RM2.3 billion of 1MDB funds.

Muhammad Shafee: Did 1MDB repatriate any funds?

Zeti: None. They (1MDB) informed us that the money was placed overseas to pay debt and we (BNM) said we can accept it, if they provide sufficient documents as well as where the funds were placed.

But, 1MDB was unable to provide the details as there were none. 1MDB admitted no monies and no investment.

Besides that, Zeti informed the court that 1MDB had in 2014 filed an application to BNM, seeking permission for them to borrow funds from offshore sources of around RM4.9 billion.

"We rejected this application because of their high level of debt. They (1MDB) were not happy and filed an appeal, however, that appeal was also rejected," she said.

When Muhammad Shafee asked if 1MDB attempted to raise an appeal with the Ministry of Finance helmed by Najib then regarding the (RM4.9 billion loan) Zeti replied that she was not aware.

Muhammad Shafee: Did Najib contact BNM and asked it to review this decision (rejection)?

Zeti: No

Najib, 70, faces four charges of using his position to obtain bribes amounting to RM2.3 billion belonging to 1MDB and 21 charges of money laundering involving the same amount.

The trial before Judge Datuk Collin Lawrence Sequerah continues tomorrow.

-- BERNAMA