[ad_1]
KUALA LUMPUR: A former CEO of 1Malaysia Development Bhd (1MDB) told the High Court that he was pressured by former Prime Minister Datuk Seri Najib Razak to ensure that 1MDB’s financial audit report was closed for 2013.
Mohd Hazem Abd Rahman, 48, who was reading a 110-page witness statement, said he was pressured by various quarters, especially Najib, who had contacted him via mobile phone several times to make sure that the financial audit report was closed.
The witness said that the audit firm KPMG was supposed to close the financial report of 1MDB for the year 2013, but the firm did not do so because it did not want to approve the investment of Brazen Sky Ltd from 1MDB as they were not happy with the explanations given. .
(The court had previously heard that Brazen Sky, incorporated in the British Virgin Islands in July 2012, was a Special Purpose Vehicle (SPV) set up for the purpose of repatriating 1MBD money.)
Hazem added that Pekan MP ordered 1MDB management to replace KPMG.
“KPMG did not close the 1MDB financial report for 2013 because they were not satisfied with the documents and the responses that were given.
“Due to Najib’s insistence to close the 1MDB account and the reputation of the company, management decided to suggest to the directors and shareholders that they replace KPMG with Deloitte,” he said here on Tuesday (September 15).
Hazem said he had no other suggestions aside from suggesting to the board of directors that it replace KPMG with Deloitte.
In his tenure as CEO, Hazem said he only knew that Deloitte closed the 1MDB account for the years 2013 (after it replaced KPMG) and 2014.
“However, in 2014, Deloitte pressured 1MDB management to prove or explain Brazen Sky’s investments.
“They pressured me because the detailed investments in Brazen Sky couldn’t be explained.
“Deloitte decided that the 1MDB account would not be closed if it did not provide that information,” he said.
This, he added, meant that the Brazen Sky investment had to be liquidated and the money repatriated to Malaysia.
Hazem said he raised the issue with fugitive businessman Low Taek Jho, or better known as Jho Low, and Low made plans to liquidate the investment.
“At the end of 2014, only US $ 1.3 billion (RM5.37 billion) out of US $ 2.3 billion (RM9.5 billion) were repatriated to Malaysia,” he said.
Because 1MDB was unable to fully liquidate the investment, Hazem said that he and 1MDB CFO Azmi Tahir went to Singapore to meet with a Deloitte Asia Pacific representative there to request that the 1MDB account be closed with just US $ 1.3 billion settled.
“The representative made the decision to send Deloitte Asia Pacific management to meet with the 1MDB board of directors to obtain a commitment from the board that after closing the audit account, the board would ensure that all investments are liquidate ASAP, “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]
