[ad_1]
KUALA LUMPUR: A portion of a US $ 3 billion (RM12.39 billion) bond raised by 1Malaysia Development Bhd (1MDB) was used to buy land in Ayer Itam, Penang, as well as in Umno’s political campaign during the 13th General Election of 2013, the Superior Court heard.
Former 1MDB CEO Mohd Hazem Abdul Rahman, 48, said this was admitted by former Prime Minister Datuk Seri Najib Razak in a ceramah (campaign speech) where he said the land would be developed by 1MDB as a project of affordable housing.
When asked by Deputy Prosecutor Mohamad Mustafa P. Kunyalam how the witness found out about the matter, Hazem said he attended the ceramah.
“This money was used in mid-2013 to buy Ayer Itam Estate Lands in Penang, which cost approximately RM1bil, paying debts to Standard Chartered around RM2bil and was also used to pay other loan interest,” he said here Tuesday (15 of September ).
I was reading your 110-page witness statement in the 1MDB trial involving Najib, who is accused of embezzling RM2.28bil in 1MDB funds.
However, the land purchase was never discussed at the board level, he said.
The witness said it was never agreed that the money would be used to pay off the debt and that it should have been used for the Abu Dhabi-Malaysia Investment Company (Admic) joint venture, as well as to finance the Tun Razak Exchange (TRX) project.
“Of the US $ 3 billion bond issued, 1MDB’s subsidiary, 1MDB Global Investment Ltd (1MDB GIL), received only about US $ 2.7 billion (RM11.15 billion) after subtracting all costs of administration with Goldman Sachs and (the money) was held in a 1MDB GIL account at BSI Bank in Lugano, Switzerland, “he said.
Najib, 67, faces four counts of abusing his position to obtain gratification totaling RM2.28 billion in 1MDB funds and 21 counts of money laundering involving the same money.
The hearing before Judge Collin Lawrence Sequerah continues on Thursday (September 17).
[ad_2]
