Najib’s counsel Shafee Abdullah also contended at the High Court that the former prime minister did not receive money originating from the bonds issued in 2009 by 1MDB’s predecessor, Terengganu Investment Authority (TIA), because his bank account in AmBank was only opened on Jan 13, 2011.
Former 1MDB non-executive director Ismee Ismail, who is the 13th prosecution witness, agreed with the lawyer’s contention that no proceeds from the bonds flipped by Jho Low ever went to Najib’s personal account.
Shafee, while referring to an article in Malaysia Today, told the court Jho Low had received money misappropriated from the issuance of bonds, which were transferred into two companies related to Jho Low – Country Group Securities PCL and Aktis Capital Singapore Pte Ltd – totaling RM74 million in 2009.
“The two companies made an easy profit when they subscribed to 1MDB bonds at a discount before reselling them at face value (or value on paper) in 2009 to the Employees Provident Fund and an insurance company, Prudential.
“We wish to establish that none of the IMTN profit went into Najib’s account. The monies in Najib’s account were only there because of the arrangement of the Arab donation. My client was under the impression it was a donation from the Saudi ministry of finance.
“Najib’s Ambank account (which allegedly received billions of ringgit in 1MDB funds) was opened in 2011, so it had nothing to do with the IMTN,” said Shafee.
The senior lawyer then questioned the witness whether he was familiar with the term “working in silo”, which had been repeated by three 1MDB top management when they were called to the witness stand: former 1MDB chief executive officers Shahrol Azral Ibrahim Halmi and Hazem Abd Rahman as well as its chief financial officer Azmi Tahir.
Ismee: Yes.
Shafee: Is it a good practice in the corporate field?
Ismee: No.
Shafee: Do you agree with me it is anathema, which is so opposite to good governance.
Ismee: Yes.
Shafee: And that is something completely discouraged because secrecy breeds corruption, breeds fraudulent behaviour in any corporation. Working in silo, therefore, is the breeding ground for a corporation to be corrupted, to be full of fraudulent transactions, such as what happened in 1MDB. Do you agree with me?
Ismee: That explains why we failed.
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 tomorrow.