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KUALA LUMPUR: A former chief executive officer (CEO) of 1Malaysia Development Berhad (1MDB) told the High Court here today that he was concerned that the company had a lot of debts and had doubts about 1MDB’s ability to pay the debts.
Mohd Hazem Abdul Rahman (pix)The 48-year-old said that among the debts that had to be paid in 2014 was with Maybank for a loan taken by 1MDB to buy shares of Tanjong Power in 2012, for an amount of RM2.5 billion.
“There were a lot of 1MDB expenses that involved project financing funds such as infrastructure development for TRX (Tun Razak Exchange) and JIMAH (JIMAH Energy Ventures), which were financed through new debt,” he added.
At the time, he said, he didn’t know if 1MDB still had its fund overseas or if they had used it for Umno, as he was previously told.
1MDB’s overseas fund at the time was estimated at US $ 3.8 billion (RM13 billion), he said, adding that the amount was enough to pay down Maybank’s debt and also as seed capital for any 1MDB project in Malaysia.
Mohd Hazem said this when reading his witness statement in the trial of the corruption case of former Prime Minister Datuk Seri Najib Abdul Razak involving RM2.3 billion in 1MDB funds.
The 10th prosecution witness, who was CEO of 1MDB from March 2013 to January 2015, said that despite being the CEO, he did not have access to or was aware of the company’s funds abroad.
Those with access to it were solely fugitive businessman Low Taek Jho or Jho Low and Jasmine Loo (a 1MDB attorney), he said, adding that Jho Low had also instructed him not to interfere with foreign funds.
He said he often met with Datuk Azlin Alias (now deceased), who was then Najib’s top private secretary, to tell him about his concerns and his intention to resign.
“I also sent an email to Azmi Tahir (CFO of 1MDB) informing him of my concerns about the irrational plans made by Jho Low for 1MDB as early as September 2013.
“I also expressed my intention to resign from Azmi Tahir,” he added.
The witness also said that 1MDB management worked hard to prepare the prospectus for listing (IPO) of its subsidiary, 1MDB Energy Group, in Bursa Malaysia.
However, he said, it could not be listed on Bursa Malaysia due, among others, to the fact that most of the media, such as The Edge and Kinibiz, give many negative opinions about 1MDB and this gave a negative perception to investors.
Mohd Hazem said Azlin always advised him to resign after the listing of 1MDB Energy in Bursa Malaysia.
“But, in late October 2014, after I came back from performing the Haj, I mentioned to Jho Low and Datuk Azlin Alias that I was serious about resigning as CEO of 1MDB,” he added.
Mohd Hazem said he also told Datuk Azlin to tell Jho Low to look for the candidate to replace him because none of his subordinates wanted to replace him.
He said that on January 3, 2015, upon his return from vacation, Azlin informed him that they had found a candidate for the Deputy CEO position and that he was asked to fill the CEO position until Edra Energy was listed in Bursa. Malaysia Malaysia in mid-2015.
“On January 5, 2015, Arul Kanda came to report as president of 1MDB, which meant that as CEO, I was required to report to him. At the time, I also thought it was the right time to resign, as the position of president is similar to that of CEO, ”he added.
Najib, 67, faces four counts of using his position to obtain bribes worth 2.3 billion ringgit of 1MDB funds and 21 counts of money laundering involving the same amount.
The hearing before Judge Collin Lawrence Sequerah continues on October 5. Named
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