Mazidah Abdul Majid, the former deputy chief secretary (cabinet), said the decision was made during the March 4, 2015 Cabinet meeting.
“During the meeting, the prime minister said he had taken note of two separate briefings to him by then Deloitte country manager (Tan Theng Hooi) and 1MDB chief executive (Arul Kanda) regarding the company.
“He said the A-G (auditor-general Ambrin Buang) needed to look into 1MDB’s financial status and table his findings before the PAC (Public Accounts Committee),” she said, making reference to the Cabinet minutes.
Mazidah told the court that Cabinet ministers expressed the view that there was no basis to a Sarawak Report story linking 1MDB to fugitive businessman Low Taek Jho.
“They said the public’s negative perception against 1MDB could be resolved through proper communication channels. If there was any wrongdoing, the Cabinet said action must be taken against those responsible,” she added.
The court previously heard that NAD officers started their audit exercise on 1MDB from March 9, 2015 to March 4, 2016.
They were supposed to table their findings before the PAC on Feb 24, 2016 but the proceedings were called off.
Ambrin and NAD officials were called to attend a meeting chaired by then-chief secretary to the government Ali Hamsa on the same day, along with other senior government officials. After the meeting, the NAD agreed to remove several items from its report.
The PAC proceedings only took place on March 4, 2016.
Najib is standing trial for alleged abuse of power as prime minister and finance minister to obtain immunity from legal action and causing amendments to the finalised 1MDB audit report before it was tabled at the PAC meeting.
Former 1MDB chief executive Arul Kanda is accused of abetting him.
To a question by Najib’s lawyer Muhammad Shafee Abdullah on whether the decision of the Cabinet was relayed to related agencies, namely NAD and the PAC, Mazidah said she only informed NAD about it but not the PAC.
“It was not under my portfolio,” she added.
Shafee: Do you agree that it was the prime minister and finance minister who suggested this (audit exercise) to ensure 1MDB’s rights are protected?
Mazidah: Yes, based on the Cabinet minutes.
Shafee: As the prime minister and finance minister, he (Najib) does not have personal interest in 1MDB, except for official interest?
Mazidah: That was his responsibility to bring it up.
Lawyer Goh Cia Yi, representing Arul Kanda, said lead counsel N Sivananthan would conduct cross examination at the next hearing.
The hearing continues before High Court judge Mohamed Zaini Mazlan on Sept 9.