KUALA LUMPUR: A former chief executive officer (CEO) of 1Malaysia Development Berhad (1MDB) today told the High Court here that he was not sure whether the company had obtained permission from Bank Negara Malaysia (BNM) to transfer huge amounts of money to various entities.

Mohd Hazem Abdul Rahman, 49, said this during cross-examination by Datuk Seri Najib Tun Razak's lead 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 questioning the 10th prosecution witness on the US$975 million loan taken by 1MDB from Deutsche Bank for the purpose of a buy-back option from one of its investment partners.

The lawyer said that parts of the said loan were not used for the real purpose but had been transferred from 1MDB Energy Holdings Limited in two tranches (US$223 million and US$475 million) to a shell company, Aabar Investments PJS Ltd (Seychelles) in September 2014 and then to various other entities.

Muhammad Shafee: Do you know that permission was needed for the transfer of such huge amounts of money originating from Malaysia?

Mohd Hazem: I agreed, technically.

Muhammad Shafee: Did you get BNM's permission when you transferred out millions of money from 1MDB to various entities?

Mohd Hazem: I'm not sure.

Muhammed Shafee: Do you know that it was an offence if you did not get permission from BNM?

Mohd Hazem: I don't know but likelihood, yes.

Muhammad Shafee: The loan from Deutsche Bank was for a specific purpose and when the purpose was not fulfilled, do you realise that you and the others had committed criminal breach of trust (CBT) of the company's funds?

Mohd Hazem: Yes, technically.

Muhammad Shafee: Technically, it was CBT. It was also money laundering.

Mohd Hazem: Yes.

Muhammad Shafee then asked if anybody had investigated the witness under CBT or money laundering offences, to which Mohd Hazem replied: No

"The Malaysian Anti-Corruption Commission (MACC) has been very kind to you," Muhammad Shafee said.

The lawyer also said that Mohd Hazem should be sent to jail for CBT and laundering of the sovereign wealth fund's money.

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 Sept 13.

-- BERNAMA