No deal with prosecution to remove name from lawsuit - Former 1MDB CEO

KUALA LUMPUR: A former chief executive officer of 1Malaysia Development Berhad (1MDB) told the High Court here today that there was no deal between him and the prosecution for his name to be dropped from the government's lawsuit against him.

Mohd Hazem Abd Rahman, 49, said this during cross-examination by Datuk Seri Najib Tun Razak's counsel Tan Sri Muhammad Shafee Abdullah at the former prime minister's trial on misappropriation of RM2.3 billion from 1MDB funds.

Muhammad Shafee was referring to an article from an online news portal which reported that for one of the suits that seek US$8 billion, 1MDB had dropped the civil action against Mohd Hazem and six other defendants.

Muhammad Shafee: Initially, civil actions were taken against you and all the senior managements of 1MDB. But, later on, all the names were removed from the suits.

I put it to you, you were in fact very concerned about the lawsuit. I'm not naming any particular person ...You actually approached the prosecution and Malaysian Anti-Corruption Commission (MACC) and say 'this could not go on (civil action) as you are giving evidence which is in favour to the prosecution but then you were sued by the government. Do you agree?

Mohd Hazem: I disagree.

Muhammad Shafee: Are you aware that the Public Accounts Committee in Parliament recommended that people like Datuk Shahrol Azral Ibrahim Halmi, the ex-1MDB CEO, and other senior management of 1MDB be investigated?

Mohd Hazem replied No.

The 10th prosecution witness also disagreed that he had been given assurance that his name would be removed from 1MDB's civil action.

Mohd Hazem also testified that he did not know why his name was removed from the civil suit.

On May 10, the Finance Ministry confirmed that 1MDB and its subsidiary SRC International Sdn Bhd had filed 22 civil suits to seek its assets of over RM96.6 billion, including RM300 million from various local parties.

The suits filed by 1MDB were against nine entities, including two foreign financial institutions and 25 individuals, while SRC filed suits against eight entities and 15 individuals over various misconduct.

Touching on a RM2.7 million bonus received by Mohd Hazem when he was working in the sovereign fund, the veteran lawyer claimed that Mohd Hazem had failed to perform his fiduciary duty whereby the company's financial situation was "going down the drain" during his tenure.

"You said your concern was that Jho Low or Low Taek Jho is the one 'controlling' 1MDB, but you seemed to be happy to take home the bonus, as proposed by the board of directors.

"The board even rated your performance as 'exceeded expectation'. How could you take home the sum without feeling ashamed?" Muhammad Shafee asked.

In response, the witness said that was what the directors had suggested.

"Do I have to answer it, Yang Arif?" Mohd Hazem asked.

At this juncture, deputy public prosecutor Ahmad Akram Gharib stood up and objected to the line of questioning, adding that the questions on Mohd Hazem's bonus are not relevant to Najib's charges.

Judge Datuk Collin Lawrence Sequerah then pointed out that the issue on whether Mohd Hazem deserved to get the sum of money or otherwise had been decided by the company's directors.

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 continues tomorrow.

-- BERNAMA