No initiative taken to probe into fake Aabar entities, court told

KUALA LUMPUR: Former 1Malaysia Development Berhad (1MDB) chief financial officer (CFO) today told the High Court here that he did not take any initiative to investigate the authenticity of two fake entities that received huge funds from 1MDB subsidiary, namely 1MDB Energy Holdings Limited (1MEHL) in 2014.

Azmi Tahir, 48, who was the CFO from 2012 to 2017, said he did not conduct any investigation on the matter as he was not instructed to do so by the board, although he was the authorised signatory of the company (1MEHL).

The 12th prosecution witness said he only knew about the fake companies in 2015 during the investigation by the Malaysian Anti-Corruption Commission (MACC).

The two fake entities are both named Aabar Investments PJS Limited, with one incorporated in the British Virgin Islands and the other incorporated in Seychelles.

The witness said this during cross-examination by Datuk Seri Najib Tun Razak's counsel Wan Aizuddin Wan Mohammed in the former premier's trial over the misappropriation of RM2.3 billion in funds from 1MDB.

Wan Aizuddin: Do you agree with me that there was a major difference in the address of Aabar Investment PJS Ltd and the real Aabar?

Azmi: Yes. It's different.

Wan Aizuddin: Did not you realise the difference when looking at the documents then?

Azmi: No. No one brought it up as well. We had lawyers, bankers, officers...we had about 40 eyes looking at the documents but no one highlighted it.

To this, Wan Aizuddin said, "It's not a good exercise. You have never done your due diligence".

To another question, the witness said he basically followed his deputy's instructions namely Terence Geh Choh Heng, as he believed the instructions were from fugitive businessman Low Taek Jho or Jho Low and Najib.

Wan Aizuddin: You followed Terence's instruction, but, between you and Terence, you are superior?

Azmi: Yes, on paper he was my deputy, we worked in silos in line with a directive by Jho Low.

The court previously heard that 1MDB took a US$975 million loan from Deutsche Bank AG, but it was never utilised to pay back the "Aabar options".

About US$175 million from the bridging loan was instead channelled to Aabar BVI, while US$681 million went to Aabar Seychelles in September 2014.

On the first day of the trial, the prosecution had said it would prove some of the funds that were transferred to the two fake Aabar entities had in 2014 allegedly made their way to Najib's bank account in 2014, namely two separate sums in sterling pounds that were equivalent to RM 4,093,500 and RM 45,837,485.70.

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 Wednesday.

-- BERNAMA