Witness: CEO told MOF Inc 1MDB reported directly to Najib

Datuk Siti Zauyah Mohd Desa, 63, said the matter was informed to the Minister of Finance Incorporated (MoF Inc) by 1MDB chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi during the process of discussions and transferring of Terengganu Investment Authority (TIA) shares to MoF Inc in 2009. TIA was officially converted to 1MDB in 2009.

The 26th prosecution witness said this when she was cross-examined by lawyer Tan Sri Muhamad Shafee Abdullah who represented Najib at the trial of the former prime minister involving the misappropriation of RM2.3 billion from 1MDB.

"They (1MDB) had the PM (prime minister) behind them, so they told me to only deal with the PM," she told the court.

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Siti Zauyah said besides Ahmad Husni, former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah also told her not to proceed with any actions when she discussed the matter with him.

Previously, Ahmad Husni told the court that he had been asked by Najib not to interfere in 1MDB's plans to invest in oil services and production company PetroSaudi International Ltd (PSI).

Ahmad Husni also told the court about the concerns he had over the country's situation and Najib following the establishment of 1MDB, which led him to send a personal letter to the Pekan Member of Parliament in August 2010.

Article 117 also states that the prime minister's prior written approval is also required for any financial commitment (including investment) and restructuring which is likely to affect the guarantee given by the government for the benefit of the company, the national interest as well as national security.

Siti Zauyah said she did not know how clause 117 was inserted as it was prepared earlier by 1MDB's company secretary before it was transferred to MoF Inc.

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 tomorrow.