I was ‘forced’ to include support letter in bond issue, says ex-Treasury official

I was ‘forced’ to include support letter in bond issue, says ex-Treasury official

Former deputy secretary-general Siti Zauyah Desa says the government was in a 'weak' financial position then.

Former Treasury deputy secretary-general Siti Zauyah Desa says the government’s support letter suggested that subscribers had no confidence in 1MDB’s bond issue. (Bernama pic)
KUALA LUMPUR:
A former Treasury official told the High Court in Najib Razak’s 1MDB trial a letter of support (LoS) issued by the government to enable the company to secure a US$3 billion loan suggested that potential subscribers had no confidence in its bond issue.

Siti Zauyah Desa, the Treasury’s former deputy secretary-general, said the government was in a “weak” position in its attempt to raise funds.

Asked under cross-examination by lawyer Wan Aizuddin Wan Mohamed what she meant by “weak”, Siti Zauyah said Malaysia’s economic rating as measured by global agencies such as Fitch was low at the time.

The court heard that 1MDB entered into a joint venture with Aabar Investment PJS in 2012 to develop the Tun Razak Exchange (TRX) project.

Goldman Sachs helped 1MDB raise the US$3 billion through bonds.

The prosecution contended that part of the US$3 billion, or US$681 million, was transferred to Najib’s bank accounts between March 21 and April 10, 2013.

Siti Zauyah said then Treasury secretary-general Irwan Serigar Abdullah “forced” her to include the LoS in the file for the US$3 billion loan.

Asked by the defence whether the LoS was a “forged” document, Siti Zauyah said she could not give an answer.

Najib is standing trial for 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.

Najib, who was taken to Kajang Prison to serve his sentence over the SRC International corruption case last month, was present in court today.

The hearing before High Court judge Collin Lawrence Sequerah continues.

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