He said KPMG had questioned them in late 2013 about the US$2.3 billion investment in Cayman Islands fund manager Brazen Sky Ltd for auditing purposes.
“We provided all the information we had to KPMG, and it was up to them to decide if they were satisfied with it.
“I don’t agree with your contention that we were trying to hide anything,” Hazem said in response to lawyer Mardhiyah Mohamed Sirajkumar.
Mardhiyah had asked if Hazem’s management team had attempted to conceal the US$2.3 billion investment in the form of promissory notes from the auditors.
She then asked whether Hazem was aware that KPMG had problems in “recognising” the US$2.3 billion investment.
“I think it is best for you to ask KPMG about this,” Hazem said.
To that, deputy public prosecutor (DPP) Mohamad Mustaffa P Kunyalam said the question should be addressed to KPMG auditors when they come to court later.
Mardhiyah also asked Hazem if he would agree with the defence’s contention that Najib had questioned the auditors’ reluctance in closing 1MDB’s financial statements because the former prime minister “trusted” the management’s explanation on the validity of the US$2.3 billion investment.
The court previously heard that Najib met KPMG auditors, led by the firm’s managing partner Johan Idris, at his Langgak Duta house on Dec 15, 2013.
During the meeting, Najib questioned Johan on why KPMG was doubting the Brazen Sky investment, and told Johan he wanted the accounts to be closed by Dec 31, 2013.
“Are you asking my opinion on this?” Hazem asked Mardhiyah.
To that, trial judge Collin Lawrence Sequerah told the lawyer that Hazem could not know what Najib had in mind during the material time.
“Can you put the questions to him on what he knew? I don’t think he has what you want.
“We are not dictating the manner in which you conduct your cross-examination, but if you are referring to information that he (Hazem) doesn’t know, you will be wasting your time,” the judge added.
Hazem, in the witness stand, was seen to nod in agreement as Sequerah spoke.
Najib is standing trial on 25 charges of abuse of power and money laundering over alleged 1MDB funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014.
The hearing continues on Nov 10.