Najib’s trial witness did not ask prosecution to have name dropped from 1MDB’s multi-billion civil lawsuit, court told

KUALA LUMPUR, Aug 17 — A former CEO of 1Malaysia Development Berhad (1MDB) today said he did not approach the prosecution after having been named in news reports as one of the individuals being sued by 1MDB in a multi-billion lawsuit, but confirmed that his name was later reported to have been removed from the lawsuit.

Mohd Hazem Abd Rahman said this while testifying as the 10th prosecution witness against former prime minister Datuk Seri Najib Razak in the latter’s criminal trial involving more than RM2 billion of 1MDB funds.

Najib’s lead defence lawyer Tan Sri Muhammad Shafee Abdullah quizzed Hazem about the civil lawsuit filed by 1MDB.

In the lawsuit filed in May 2021, 1MDB and four of its subsidiaries had initially named 15 individuals reportedly claiming US$8 billion (RM33.9 billion) over various alleged wrongdoings such as negligence, fraudulent misrepresentation, fraudulent breach of duties, dishonest assistance, fraudulent misappropriation or unjust enrichment, with the 15 including Najib himself, 1MDB board members and 1MDB’s former senior management such as Hazem.

Under cross-examination by Shafee, Hazem said he had only read about the 1MDB lawsuit from news reports, but had not personally seen the lawsuit papers as he was not served with the court papers.

Shafee then showed the lawsuit papers in May 2021 to Hazem in court, where 1MDB and its four subsidiaries had listed 15 individuals including Najib and Hazem.

Hazem confirmed that he had never seen a copy of the lawsuit papers until today, agreeing that he had read the news about the 1MDB lawsuit which named him when he was already a witness in Najib’s 1MDB criminal trial.

Asked by Shafee what went through his head when he read of 1MDB suing him and others when he was a prosecution witness in the 1MDB trial, Hazem said he was just waiting for the lawsuit papers to be served on him and confirmed he did not approach the prosecution to ask why he was being sued despite being a trial witness.

Shafee: So you are saying you did not do anything, but you pursued in giving evidence until now.

Hazem: Yes.

Shafee: You did not do anything.

Hazem: No.

Shafee then produced an amended version of the 1MDB lawsuit papers or amended writ as filed in court, which now had removed several individuals including Hazem from the original list of 15 individuals being sued. (Local news outlet The Edge yesterday reported that the amended writ was filed on July 12 to remove seven of the initial 15 individuals named from the 1MDB lawsuit.)

The amended lawsuit papers now only contain eight individuals being sued, namely Najib, Terence Geh Choh Heng, Jasmine Loo Ai Swan, Casey Tang Keng Chee, Vincent Beng Huat Koh, Radhi Mohamad, Kelvin Tan Kay Jin and Nik Faisal Ariff Kamil. Some of the remaining defendants are now fugitives wanted in Malaysia to answer charges over 1MDB matters.

Shafee: Did you also read in the newspapers, that in spite of you not doing anything, your name has been miraculously removed as a defendant within a month of being sued? Your name has been removed, you agree?

Hazem: I read the article, yes there was an article.

Hazem agreed with Shafee that others who were removed from the list of individuals being sued by 1MDB included senior management such as the ninth prosecution witness in the 1MDB trial —- former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi —- and former 1MDB chief financial officer Azmi Tahir whom Shafee said will be an upcoming trial witness.

Shafee: You have no reason or you don’t know why your name or others have been removed?

Hazem: No.

When asked if he knew whether there have been representations made that witnesses should not be sued as their cooperation is needed in the 1MDB trial, Hazem said he was not aware.

Shafee: Now I’m putting to you that you in fact were very concerned, and I’m not naming any particular person, you actually approached the prosecution and said, this cannot go on, you are giving evidence in favour of prosecution and yet you were sued in a civil suit with such serious allegation, you in fact approached the prosecution and the MACC, I’m putting it to you.

Hazem: I disagree.

Shafee: And you were given assurance that your name would be removed.

Hazem: No, I disagree.

Hazem confirmed he was not happy when his name was included in the 1MDB lawsuit, and agreed with Shafee that he was very happy when his name was removed.

Hazem also confirmed that he had not been charged in any criminal trial in relation to 1MDB.

Later, Shafee claimed that the lawyers for 1MDB had --- when removing Hazem’s name from the list of individuals being sued --- given an undertaking to the court that they had no right to file a fresh lawsuit against Hazem, but Hazem said he was unaware of this.

Hazem also disagreed that he had made a deal to testify against Najib in the latter’s trial in exchange for not being sued or charged.

Shafee: This was a very strange situation, where they have given an undertaking, no liberty to file afresh. I’m putting to you the reason that was done was because of a deal struck between you and the prosecution, that you would give favourable evidence to the prosecution which are totally adverse to Datuk Seri Najib, and the deal was you would get immunity both civil and criminal.

Hazem: I disagree.

Shafee: Similarly Hazem, although the prosecution cannot give you this undertaking, it would be illegal, but you were given that kind of undertaking, for you to give evidence against Datuk Seri Najib adversely to him, you would be treated as witness and would not be charged?

Hazem: No.

Hazem disagreed that he was purposely chosen or personally selected by Low in order to play the pivotal role of being both in 1MDB management and 1MDB board. — Picture by Yusof Mat Isa

Among other things, Hazem disagreed that he was purposely chosen or personally selected by Low in order to play the pivotal role of being both in 1MDB management and 1MDB board in order to make misrepresentations to the 1MDB board.

Hazem also disagreed with Shafee’s suggestion that he had as 1MDB CEO and director knowingly misled the company’s shareholder MOF Inc which was represented by Najib as the finance minister, also disagreeing with the suggestion that he had allowed Low and his co-conspirators to mislead Najib as MOF Inc representative.

Hazem also disagreed with Shafee’s suggestion that he had allowed 1MDB matters to be approved as a result of misrepresentation that would cause wrongful gain to Low and wrongful loss to 1MDB and MOF Inc, also disagreeing that he was part of Low’s conspiracy and had made use of Najib’s name as Low did or would stand to benefit from Low’s wrongful gains.

Disagreeing that he was only presuming Najib to be part of Low’s conspiracy without having proof, Hazem also disagreed with Shafee’s suggestion that Najib had never gave instructions to Low in the manner claimed by the latter or that he had never bothered to find out about the truth of this matter.

Shafee: And lastly, I put it to you Hazem, that you were part of the entire scam to cheat 1MDB and when the authorities including MACC discovered that you were part of the scam in their investigation, they have put pressure on you to cooperate in order to give adverse evidence against Datuk Seri Najib.

Hazem: I disagree.

Shafee also suggested that Hazem could not have naively believed Low’s instructions were instructions from Najib in light of his experience and education, but Hazem disagreed.

Najib’s 1MDB trial before High Court judge Collin Lawrence Sequerah resumes tomorrow morning.