Najib denies responsible for US$1 billion loss in 1MDB investment

KUALA LUMPUR - Datuk Seri Najib Razak has denied any responsibility for the loss of the US$1 billion investment in the joint venture between 1Malaysia Development Berhad (1MDB) and PetroSaudi International Limited (PSI).

Testifying in the High Court, Najib asserted that the blame lies solely with the 1MDB management, particularly former Chief Executive Officer Datuk Shahrol Azral Ibrahim Halmi.

"The loss of the US$1 billion cannot be attributed to me, nor to any alleged directive for the 1MDB board of directors (BOD) to pass a resolution to participate in a joint venture with PSI, or to any purported nefarious interest on my part.

"Instead, the responsibility lies squarely with the management, particularly Datuk Shahrol,” Najib said when reading out his 525-page witness statement.

He said Shahrol Azral was never authorised or directed to enter into a joint venture with PetroSaudi Holdings (Cayman) Limited.

"It was never mentioned in the position papers presented to the board or orally mentioned during the numerous board meetings. This should have raised alarm bells to Datuk Shahrol but he was more than eager to sign the joint venture agreement nonetheless and even happier to depart with the US$1 billion.

"As for Datuk Shahrol's convenient excuse that he facilitated the remittance of the US$1 billion because he allegedly believed the instructions originated from me, one might almost admire the audacity of such a claim if it weren't so obviously absurd as it not only contradicts the contemporaneous documented evidence.

"But then again, when it comes to me, such evidence seems to conveniently be wilfully ignored," he added.

Najib also stated that Shahrol Azral's explanation for the remittance of the US$1 billion, in defiance of the BOD's instructions, as implausible, is granted unwarranted credibility not for its merit but because it serves a politically motivated agenda against him.

"Holding Shahrol accountable would undoubtedly expose the fragility of his narrative and damage his credibility. Instead, he is allowed to hide behind such excuses, essentially getting off scot-free for the US$1 billion loss, just so he can be portrayed as a flawless, perfectly credible witness, perhaps even the gold standard of exemplary witnesses in abuse of power cases against politicians like me.

"Isn't he lucky that I am the accused person? Because if I were not the former Prime Minister of Malaysia and Finance Minister, I truly believe the stand he would be occupying wouldn't be the witness stand but the dock," he added.

The former Pekan MP took the stand today to defend himself against four charges of using his position to obtain gratification totalling RM2.3 billion in 1MDB funds and 21 money laundering charges involving the same amount.

On Oct 30, Justice Datuk Collin Lawrence Sequerah ordered Najib to enter his defence on all 25 charges after finding that the prosecution had succeeded in establishing a prima facie case against the former prime minister on all the charges at the end of the prosecution's case. - BERNAMA