Najib proposed 1MDB joint venture with Aabar through Jho Low - Witness

KUALA LUMPUR: The High Court was told today that the joint venture between 1Malaysia Development Berhad (1MDB) and International Petroleum Co (IPIC) subsidiary, Aabar Investment PJS (Aabar) was proposed by Datuk Seri Najib Tun Razak through wanted businessman Low Taek Jho, or better known as Jho Low.

Former chief financial officer (CFO) of 1MDB, Azmi Tahir said he was personally informed of the matter by Jho Low, and that Abu Dhabi Malaysia Investment Company (ADMIC) was registered in the British Virgin Islands on March 5, 2013, by 1MDB's lawyer Jasmine Loo.

Azmi said he did not know in detail the real purpose of setting up ADMIC, but since it had been set up by Loo, it would have been most likely what Jho Low had wanted.

"I was actively being directed by Jho Low following the proposal to enter into a joint venture with Aabar at the end of 2012, where I, as CFO, would be involved in all actions involving the financial process.

"This includes the time in 2013, when Jho Low and Datuk Seri Najib were working to ensure the success of the 'G to G' (government to government) joint venture involving Abu Dhabi and Malaysia," said Azmi.

He said this when reading out his 127-page witness statement at the corruption and money laundering trial faced by Najib involving RM2.3 billion in funds belonging to 1MDB.

The 12th prosecution witness said the proposed joint venture between Abu Dhabi and Malaysia was begun with Parcel A.1.0 in TRX, but it was not implemented due to some changes later, even though he as the CFO was not involved in the technical and financial studies.

"Then there was another joint venture plan with Aabar relating to investment and real estate development, but I was not involved there as well, because it was under the supervision of the investment division as well as Loo. As far as I know, this joint venture also did not materialise.

"After both of them (joint ventures) failed, Jho Low planned a third joint venture called 'Project Catalyze' and he instructed Loo to lead the project because it involved US $ 6 billion in fundraising, whereby Loo was more proficient in (dealing with) the currency," he said.

Azmi said at the beginning of the discussions on the project, Jho Low had proposed to use a 'Letter of Comfort' from the Ministry of Finance as a guarantee for the issuance of bonds.

"This project was an instruction from Datuk Seri Najib through Jho Low, whereby Jho Low had instructed to speed up the process, especially in terms of getting the bonds issued. Because of that, it was done in a hurry and very fast," he said.

Azmi was then referred to a 'Letter of Support' dated March 14, 2013, signed by the then finance minister Najib, representing the Malaysian government.

The witness said the letter was intended to support the issuance of US $ 3 billion in bonds and as a 'Government Guarantee', which would assume responsibility for the funds in the event 1MDB failed to make the repayments.

"Datuk Seri Najib approved this letter of support by signing it within a short period of time. It was in line with what Jho Low had informed us, that Najib would approve it and we do not have to worry about the approval," he said.

Najib, 68, faces four charges, namely using his position to obtain bribes amounting to 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.

-- BERNAMA