In submissions at the close of the prosecution’s case, deputy public prosecutor Ahmad Akram Gharib said Najib was instrumental in renaming TIA to 1MDB.
“Najib’s former special officer, Amhari Efendi Nazaruddin, confirmed that the accused wanted TIA to become a special vehicle for strategic investments overseas, in which Jho Low would act as the director,” he said in reference to fugitive financier Low Taek Jho.
Citing various examples, Akram said the evidence adduced in court showed that Najib caused amendments to 1MDB’s constitution to place himself in sole control of important matters related to business and affairs of the company.
He said former 1MDB chairman Bakke Salleh testified that Najib had instructed the board of directors to finalise a sham US$1 billion joint venture with PetroSaudi International (PSI) despite grappling with a botched RM5 billion bond.
“Bakke testified that at the point the telephone conversation (was held), the board was still making inquiries regarding the bond,” he said, referring to an Islamic medium-term note intended to raise funds for development projects.
Akram said Bakke also stated that the decision not to make reference to the phone call in the meeting’s minutes was intended to protect Najib.
He said the evidence showed Najib had discussed joint ventures between 1MDB and alleged Arab-based companies such as PSI and Aabar Investments when on family holidays to France and Greece.
“This again shows that the accused had a personal interest in the 1MDB affairs,” he said.
Akram said Amhari had also testified that Najib had personally instructed him to go to China and offer infrastructure projects in return for money to bail out 1MDB and its then subsidiary, SRC International Sdn Bhd.
“The instruction was given to Amhari at the accused’s house in Langgak Duta. Amhari considered this to be a secret mission,” he said, adding that only Jho Low and Amhari attended the meeting in China.
Akram said then-finance minister II Ahmad Husni Hanadzlah had cautioned Najib against setting up 1MDB as no feasibility study had been conducted on the nature of its intended business, and its associated risks and liabilities.
“The accused told Husni, ‘I am going to go ahead’,” he said.
He said Siti Zauyah Desa, then the Treasury’s deputy secretary-general, had testified about how Putrajaya had fast-tracked the issuance of a government guarantee for a new US$3 billion borrowing in 2013 by a 1MDB subsidiary without following proper procedure.
“A letter of support dated March 14, 2013, signed by the accused as the finance minister effectively acted as a government guarantee for the US$3 billion debt.
“This would mean the government had to bear the debt if the 1MDB subsidiary was unable to make repayments,” he said.
Akram said The Edge Media Group chairman Tong Kooi Ong testified that he went to Najib’s house in Langgak Duta to seek clarification regarding problems arising in 1MDB’s affairs.
He said it was in evidence that Tong had advised Najib that Jho Low should be held accountable and prosecuted for diverting US$700 million to Good Star.
“In response, the accused went to the front door and opened it for him to leave. This again shows the accused had an interest in 1MDB affairs,” he said.
Akram said the charges involving abuse of power were clear and Najib had not been misled by it.
“The accused had used his public position to obtain gratification. He should be ordered to enter his defence,” he added.
Najib is charged with 25 counts of money laundering and abuse of power over alleged 1MDB funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014.
The hearing before Justice Collin Lawrence Sequerah continues.