Mohd Hazem Abdul Rahman, 49, said this during cross-examination by Najib Razak’s lead counsel, Muhammad Shafee Abdullah, at the former prime minister’s trial on misappropriation of RM2.3 billion in 1MDB funds.

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 parts of the 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.

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

Hazem: I agree, technically.

Shafee: Did you get BNM’s permission when you transferred out millions from 1MDB to various entities?

Hazem: I’m not sure.

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

Hazem: I don’t know but likelihood, yes.

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?

Hazem: Yes, technically.

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

Hazem: Yes.

Shafee then asked Hazem if anybody had investigated him for CBT or money laundering offences, to which Hazem replied: No

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

The lawyer also said that 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 Collin Lawrence Sequerah continues on Sept 13.