Former 1MDB CEO admits being controlled by Jho Low 'to certain extent'

Mohd Hazem Abd Rahman, 49, conceded to a suggestion posed by lawyer Mardhiyah Siraj that he and 1MDB former chief financial officer (CFO) Azmi Tahir were under the control of Jho Low as they had carried out his instructions during a meeting with an accounting firm, KPMG Malaysia in 2013.

"To a certain extent, yes," said Mohd Hazem when cross-examined by Mardhiyah, who is representing Datuk Seri Najib Tun Razak in the former prime minister's trial over the misappropriation of RM2.3 billion funds from 1MDB.

Mardhiyah, in her line of questioning, was referring to a paragraph from Mohd Hazem's witness statement where he stated Jho Low had emailed him, Azmi, and 1MDB former executive director, Terence Geh a 'briefing package' before the 2013 meeting.

The 'briefing package' contains an explanation from Jho Low which emphasises the answers to the issues raised by KPMG and the strategies needed to be followed by the representatives on 1MDB during the meeting.

KPMG was appointed as 1MDB's auditor for the financial years of 2010, 2011 and 2012 but was sacked in 2013 after it refused to sign off 1MDB's accounts for the 2013 financial year.

Further questioned by the lawyer, Mohd Hazem however disagreed that he, Azmi and Terence had followed Jho Low's email instructions to the disadvantage of 1MDB.

The lawyer also suggested to the witness that the reason why he as the CEO of 1MDB had to rely upon Jho Low's email was because he conspired with the fugitive financier to conceal some facts from the accounting firm and the 1MDB board of directors, to which Mohd Hazem disagreed.

Mardhiyah: Why couldn't the (1MDB) management satisfy KPMG requests to its question? Why couldn't you provide the information to your auditor? Why rely on Jho Low and his emails?

Mohd Hazem: As I highlighted throughout the course of the proceedings, I relied upon the finance team and information given by Jho Low.

Najib, 68, is facing four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount.

The trial before Justice Datuk Collin Lawrence Sequerah continues tomorrow.