Witness testifies in former PM Najib trial that 1MDB investments fail to profit Malaysia

KUALA LUMPUR, MALAYSIA: During the ongoing trial of former Malaysian Prime Minister Datuk Seri Najib Razak, a witness in the Malaysian court testified that despite billions of ringgit poured into investments by 1Malaysia Development Bhd (1MDB), the investments failed to yield any profit for the country.

Nur Aida Arifin, a senior officer from the Malaysian Anti-Corruption Commission (MACC), informed the High Court on Wednesday (29 May) that even the iconic Tun Razak Exchange (TRX) had to rely on foreign investments from other companies to be completed, as the funds had been misappropriated.

Testifying in the corruption trial of Datuk Seri Najib Razak, which involves the misappropriation of billions of ringgit from the sovereign wealth fund, Nur Aida was cross-examined by Najib’s lawyer, Wan Azwan Aiman Wan Fakhruddin.

The lawyer suggested that 1MDB’s investments in various sectors were profitable, citing examples such as the energy sector and the TRX tower construction.

Disagreeing with the lawyer, Nur Aida, who is the investigating officer in the 1MDB probe, stated that the IPP was later sold to Chinese investors to settle 1MDB’s debts.

She emphasized that TRX was financed by foreign investors due to funds being swindled.

Based on Nur Aida’s investigation, funds earmarked for the development of TRX, initially known as Kuala Lumpur International Financial District (KLIFD), were embezzled. Consequently, foreign investments were necessary to sustain the project.

“TRX was actually financed by foreign investors,” she said.

During her testimony on Tuesday, Nur Aida revealed that Najib had taken various steps to obstruct the MACC during their investigation into 1MDB back in 2015-2016.

These actions included changes in the MACC chief commissioner, transfers of officers, arrests, disregarding Mutual Legal Assistance requests by the attorney general, and orders to classify the case as ‘No Further Action’ (NFA).

When asked by Najib’s lawyer, Tan Sri Muhammad Shafee Abdullah, who ordered the case to be classified as NFA, Nur Aida indicated it was Tan Sri Apandi Ali, the attorney general at the time, acting under Najib’s instruction.

She further explained that throughout the investigation, she had interrogated Najib’s former special officer, Datuk Amhari Efendi Nazaruddin, who admitted possessing notes from fugitive Low Taek Jho (Jho Low).

These notes outlined instructions for damage control after the 1MDB scandal broke, including closing the case and disregarding the MACC’s requests for Mutual Legal Assistance.

Amhari, the eighth prosecution witness, confirmed the existence of the note during his testimony in 2019, according to Nur Aida. The note contained instructions to close the case and deemed the Mutual Legal Assistance (MLA) request by the MACC unnecessary.

When questioned by Muhammad Shafee about direct evidence linking Apandi to Najib’s directives, Nur Aida admitted she had none. However, she maintained that the events described in the note had indeed occurred, based on her comprehensive investigation.

Muhammad Shafee remarked, “You are talking like you are in a coffee shop.”

Nur Aida responded firmly, stating that her statements were grounded in evidence obtained from witnesses and documents, not mere speculation.

In January 2016, Apandi cleared Najib of any criminal involvement in the RM2.6 billion in 1MDB-linked funds and RM42 million from SRC International Sdn Bhd entering Najib’s personal bank accounts. Apandi, who succeeded Tan Sri Abdul Gani Patail as the attorney general, declared after thorough examination of the documents submitted by the MACC that the cases were to be closed.

In February, Nur Aida testified that the appointment of Tan Sri Dzulkifli Ahmad as the MACC chief commissioner in 2016, replacing Tan Sri Abu Kassim, effectively halted the investigation into Najib’s alleged misappropriation of funds.