KUALA LUMPUR - Datuk Seri Najib Razak’s counsel told the High Court here that the former 1Malaysia Development Berhad (1MDB) chief executive officer Mohd Hazem Abdul Rahman is not a credible and reliable witness as his testimony was riddled with inconsistencies and contradictions.
The former prime minister’s counsel Wan Azwan Aiman Wan Fakhruddin said that Hazem who was the 10th prosecution witness deliberately took action to conceal financial losses from audit firm KPMG Malaysia and played the lead role in ensuring their termination.
"My Lord, in fact, Hazem admitted that efforts were made to prevent KPMG from discovering the true financial state of 1MDB. He acknowledged that the senior management including himself, was involved in manipulating financial documents and withholding critical information to cover up significant losses.
"In regards to the strategic replacement of KPMG with Deloitte, Hazem admitted that the decision to replace KPMG was strategic, aiming to bring in auditors who would be more compliant with management’s directives and less likely to uncover financial discrepancies,” he said.
Wan Azwan Aiman was making his submission at the close of the prosecution's case today before Justice Datuk Collin Lawrence Sequerah.
The lawyer further argued that the testimony of the 47th prosecution witness, Bank Negara Malaysia analyst Adam Ariff Mohd Roslan ought to be deemed inadmissible because he is not a witness of fact nor an expert witness.
"Adam Ariff is not a witness of fact as his evidence does not stem from his own sensory perception or firsthand observations during the time the transactions occurred. He does not have firsthand knowledge and did not play any role in the investigation of the matter that would justify him being called as a witness.
"He could not testify about matters such as how the investigation was conducted, for example, how the documents were obtained. It is the submission of the defence that Adam Ariff does not possess any special knowledge that could make his role as a witness whose opinion is admissible in court," he said.
The lawyer said Adam Ariff is also not an expert witness as his expertise and understanding is limited to his work on money trail report which is based on assumptions and intelligent guesswork.
"Even the witness confirmed that the money trail analysis can be undertaken by anyone, which shows that it is not a matter that requires specialised knowledge. He also admitted his analysis only relied on documents furnished to him by the investigating officer," he said.
Najib, 71, faces four charges of abusing his position to obtain RM2.3 billion from 1MDB funds at the AmIslamic Bank Berhad branch on Jalan Raja Chulan, Bukit Ceylon, between Feb 24, 2011, and Dec 19, 2014.
He also faces 21 charges of money laundering involving the same amount at the same bank between March 22, 2013 and Aug 30, 2013.
Najib is charged under Section 23(1) of the MACC Act 2009 and Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act.
The submission continues tomorrow. - BERNAMA