Azmi Tahir said fugitive financier Low Taek Jho, or Jho Low, had prepared 1MDB officials and Najib on what to tell KPMG at their meeting on Dec 15, 2013, after the auditors raised questions on 1MDB’s US$2.3 billion investment in Brazen Sky Ltd.
He said the auditors refused to sign off the 2013 financial statements if the company could not provide sufficient details about the investment.
“The management team and directors were told by Jho Low that we needed to say something like ‘the prime minister was briefed and he is confident about the 1MDB investments, based on existing documents’.
“In Jho Low’s email, he mentioned that ‘the prime minister is recommended not to engage in a lengthy discussion with KPMG, although he may offer them a brief opportunity to air their views’,” he said.
The court previously heard that 1MDB officials – Azmi, former CEO Mohd Hazem Abdul Rahman, former chairman Che Lodin Wok Kamaruddin, former director Ismee Ismail, Najib’s late principal private secretary Azlin Alias and former BSI Bank senior banker Yak Yew Chee – attended the Dec 15, 2013 meeting at Najib’s home in Langgak Duta.
KPMG auditors Johan Idris and Ahmad Nasri Abdul Wahab were also present.
Azmi said Najib also received a copy of Low’s talking points, and he (Najib) highlighted to KPMG what Low had suggested.
“During the meeting, Johan asked him (Najib) whether he knew about the US$2.3 billion investment in Brazen Sky.
“Najib said he knew about the investment and questioned why KPMG was doubting 1MDB’s
underlying assets, even after BSI Bank had shown the financial statements as proof.
“He also told Johan to close the accounts by Dec 31, 2013,” he said.
However, he said Johan and his team were not satisfied with Najib’s explanation during the meeting and refused to sign off the 2013 financial statements.
“This prompted us to substitute KPMG with Deloitte at the 11th hour,” he said.
Azmi said that after Deloitte took over, the auditors also asked questions about Brazen Sky and demanded to meet BSI Bank over the US$2.3 billion investment.
He said his then deputy, Terence Geh, flew to Singapore with Deloitte auditors to meet (BSI banker) Yak.
“Terence told me the auditors were not happy with Yak’s explanation and we decided to set up a meeting for them at BSI Bank’s headquarters in Lugano, Switzerland.
“I went to the meeting in Lugano with Terence. After the meeting, Deloitte made a new request to meet our fund manager (Avestra),” he said.
He also said Avestra told him the funds were guaranteed by Aabar Investment.
“Deloitte asked us to call a meeting with Aabar to confirm the guarantee.
“During the meeting held in 2014, the auditors questioned why 1MDB and Aabar had various working relationships for different projects, and Aabar’s representative said the cooperation between 1MDB and Aabar was part of ‘diplomatic relations’.”
Azmi said that after Deloitte had raised numerous questions on the US$2.3 billion investment, it signed off the 2014 financial statements.
Najib faces 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 before High Court judge Collin Lawrence Sequerah continues.
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