Zeti said her investigating officers suggested that former 1MDB CEO Shahrol Azral Ibrahim Halmi, former executive Tang Keng Chee and former investment director Nik Faisal Ariff Kamil be prosecuted under the Exchange Control Act 1953 for giving false information to BNM in connection with 1MDB’s application to make payments outside Malaysia.
However, she said then attorney-general Apandi Ali did not take any further action.
In 2009, 1MDB entered into a joint venture with PetroSaudi International (PSI), which required 1MDB to provide US$1 billion in capital.
BNM granted approval to 1MDB to remit the US$1 billion to the 1MDB-PSI joint venture’s bank account but only US$300 million was deposited.
However, on Sept 11, 2015, the Attorney-General’s Chambers said that the 1MDB investigation papers were to be classified as requiring “no further action”, despite Zeti saying there was overwhelming evidence to justify prosecution.
Lawyer Shafee Abdullah asked Zeti whether Najib played any role in the US$1 billion transaction.
In reply, she said Najib submitted a government guarantee to finance the joint venture.
“One of the reasons BNM approved (the application to make payments outside Malaysia) was because it was approved by 1MDB’s board of directors and the Cabinet also approved the government guarantee.
“When we investigated (later), BNM found out there was no such investment,” Zeti said, adding that Najib was also chairman of the 1MDB board of advisers and thus had an executive role.
“He would have been aware of such an investment,” Zeti said.
Shafee challenged Zeti’s response, saying the former prime minister could not have been running the company because under the company’s constitution, the board of advisors could only commence a meeting at the request of one of the directors.
However, Zeti would not be swayed, saying that her evidence was based on BNM’s investigations.
“I should also mention that 1MDB is a company fully owned by the government, so are you saying the (former) finance minister was not aware of this major investment?” asked Zeti.
Shafee: If we go according to your rhetoric that the (former) prime minister would have known, surely you would know what was in your husband and kids’ accounts?
Zeti: I don’t monitor investments in entities in which I am not involved, and for which I am not accountable.
Najib is standing trial on 25 charges of abuse of power and money laundering of alleged 1MDB funds over RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014.
The hearing before Justice Collin Lawrence Sequerah continues tomorrow.