KUALA LUMPUR: Datuk Seri Najib Razak has denied claims that 1Malaysia Development Bhd (1MDB) was established to serve his personal interests or fund Umno, the High Court heard.
The former prime minister said that the problems with the sovereign wealth fund stemmed from a systemic failure in decision-making at the management level, particularly under the leadership of former CEOs Datuk Shahrol Azral Ibrahim Halmi and Hazem Rahman.
"I recall Hazem's testimony in court where he admitted that he was placed in management to carry out the instructions of fugitive businessman Low Taek Jho (Jho Low)," Najib said.
"He specifically admitted that, regarding the US$3 billion raised for 1MDB Global Investment Limited, he was appointed as a director just to sign documents placed before him, at the direction of Low and his associates Jasmine Loo Ai Swan and Terrence Geh."
"This was the admission made in court by the CEO of 1MDB no less who admitted that he had to follow the instructions of Jho Low and his proxies.
"At any rate, I find it equally baffling that such a serious allegation, of corruption of the highest order, was not even asked by the Malaysian Anti-Corruption Commission (MACC) investigator during the recording of my statement.
"I suspect this claim was only concocted later to salvage any credibility left in Hazem given his admissions to forgery, multiple acts of criminal breach of trust, and breach of fiduciary duties as a director," he said.
In his witness statement, Najib, 71, is defending himself against charges of abuse of power and money laundering involving RM2.3 billion from 1MDB funds.
Hazem, during his testimony in the same trial, claimed the true purpose of 1MDB's creation was to help Umno raise funds through the company's strategic investments.
He further stated that Low had informed him that 1MDB was under Najib's control, with the latter holding ultimate authority over all decisions.
Najib faces four charges of using his position to obtain RM2.3 billion in bribes from 1MDB funds, and 21 charges of money laundering involving the same amount.
The trial, before Judge Datuk Collin Lawrence Sequerah, continues.a