KUALA LUMPUR: A witness in 1Malaysia Development Berhad (1MDB) trial told the High Court today he did not resign from the company because he had confidence in former prime minister Datuk Seri Najib Tun Razak's leadership in 1MDB due to the sovereign wealth fund dealings with the Saudis.

Former non-executive director of 1MDB Tan Sri Ismee Ismail, 58, who was also the Tabung Haji (TH) chief executive officer (CEO) from 2006 to 2016 said he thought the joint ventures between the company and the Saudis would have been beneficial.

This was despite 1MDB's management non-compliance involving a joint venture (JV) between the company and Saudi-based oil and gas production company, PetroSaudi International Ltd (PSI) in September 2009 which had angered former 1MDB chairman Tan Sri Mohd Bakke Salleh.

He told the court this during re-examination by lead prosecutor Datuk Seri Gopal Sri Ram, who had referred the witness to the minutes of a Sept 26, 2009 meeting in which the board of directors had given some stipulations on the JV but the management had not followed through.

Mohd Bakke resigned shortly after that on Oct 19, 2009.

Ismee added during his early days when he joined 1MDB in 2009, he thought it would be a good initiative for the company because in his capacity as Tabung Haji CEO, it would further enhance the relationship between the company with the Saudis.

"That time I had a quite high-level degree of trust in the leadership, in the PM (Najib) himself, trust and loyalty, so I suppose that's why I didn't do "the Bakke", said Ismee.

The 13th prosecution witness was referring to Mohd Bakke leaving the company in 2009.

Meanwhile, another witness, former 1MDB chief financial officer Azmi Tahir disagreed with the suggestion of counsel Datuk Hariharan Tara Singh that his loyalty was not to the sovereign wealth fund nor to its subsidiaries but to the fugitive businessman Low Taek Jho or Jho Low.

The 12th prosecution witness was questioned on the US$1.58 billion which was transferred out from 1MDB Global Investments Ltd (1MDB GIL) as it was instructed by Jho Low.

Hariharan: Would you agree with me that, the loyalty should be on 1MDB, 1MDB GIL not (an) outsider (Jho Low)?

Azmi: I believe he (Jho Low) was representing the shareholder (Najib).

The court heard that the US$1.58 billion was used for unspecified "foreign investments".

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 judge Datuk Collin Lawrence Sequerah continues on April 18.

-- BERNAMA