Najib Trial Day 27 Court Adjourns Early Today After Defence Asks For Further Documents

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The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 27th day today at the High Court in Kuala Lumpur
Malaysiakini brings you live reports of the proceedings
Summary of Najib’s SRC RM42 million caseNajib is facing 7 charges relating to RM42m involving SRC International, a former 1MDB subsidiary
1 abuse of power charge3 criminal breach of trust (CBT) charges3 money laundering chargesClick to view infomation on judge, prosecution and defence teamKEY HIGHLIGHTSCourt adjourns early after defence asks for further documentsWitness: I would've alerted AGC if I'd known Najib was SRC adviserNajib left a cabinet meeting in 2012 due to conflict of interest - witness'Cabinet approved RM100m short-term gov't loan to SRC'Cabinet also committed to gov't guarantee for second RM2b loan sans discussionCabinet committed to gov't guarantee for RM2b loan without discussionWitness: If SRC board didn't listen to Najib, we would be removedAre you asking about J Lo or Jho Low, witness asks DPPSRC not compelled to follow Najib's advice, witness agreesSRC finance head may have misled CEO on audit submission - witnessWitness: In hindsight, I wouldn't have joined SRC boardRosmah leaves court after prosecution questions presenceSRC ex-CEO had 'a good family background'Thank you for following Malaysiakini's live report4.45pm - Thank you for following our live report today
Court adjourns early after defence asks for further documents 4.30pm - The proceeding for today is adjourned ahead of its 5pm call time as the defence requires witness Mazidah Abdul Majid to bring a guideline document before they can further question her
Lead defence counsel Muhammad Shafee Abdullah says they would need to study the guideline for cabinet members, as the retired cabinet deputy secretary-general had brought up about requirement for administration members to excuse themselves from a meeting in the event they might have a conflict of interest
Shafee says that the defence would also need her to provide further details into three examples she had given in her witness statement on instances where ministers had excused themselves from cabinet meeting
The witness tells the court that she might not be able to do much as she has now retired, before Shafee says that it is now up to the prosecution to try to get further documents from cabinet meetings as stated in the example
For the record, minutes of cabinet meetings are sealed under the Official Secrets Act (OSA), and would have to be declassified by the government before it can be tendered in court
DPP V Sithambaram (below) says that they are working together with officers from the Prime Minister's Department to get the documents, and they would try to make it available the first thing when the hearing resumes tomorrow morning
In the earlier part of the hearing, Mazidah had in her testimony said there was a practice for cabinet members to declare any conflict of interest should they have any during a meeting, and that they were to leave the meeting when the related memorandum is presented
She gave examples of cabinet meetings on Dec 14, 2016 where then defence minister Hishammuddin Hussein left the cabinet meeting, when then youth and sports minister Khairy Jamaluddin left the cabinet meeting on April 26, 2017, and when Najib excluded himself from a cabinet meeting on Nov 23, 2012
However, no details on the three meetings were provided in Mazidah's witness statement
Initially, Justice Mohd Nazlan Mohd Ghazali wanted the hearing to resume until 5pm, when he asks the prosecution if they have another witness to call today besides Mazidah
However, when Sithambaram tells the court that they do not have another witness ready for examination today, Nazlan rules for the hearing to be adjourned until 9am tomorrow
Witness: I would've alerted AGC if I'd known Najib was SRC adviser4pm - Retired cabinet deputy secretary-general Mazidah Abdul Majid testifies that, if she had known that then premier Najib Abdul Razak was adviser emeritus to SRC International, she would have raised concerns about potential conflicts of interest with the Attorney-General's Chambers (AGC)
During cross-examination by Najib's lead defence counsel Muhammad Shafee Abdullah, the 40th witness says this is what she would have done if she had known about Najib's involvement with SRC International when the cabinet approved a government guarantee for an RM2 billion loan to the company in 2011
SRC International was granted a first loan of RM2 billion from the Retirement Fund Incorporated (KWAP) in August 2011, and a second loan of the same amount in March 2012
Earlier today, Mazidah testified that, in meetings chaired by then prime minister Najib in Aug 2011 and Feb 2012, members of the cabinet then had approved a government guarantee for each loan
She had told the court that the cabinet ministers present at the time did not discuss the proposed government guarantee before it was approved
"If it was brought to me that he (Najib) was adviser emeritus and (there were) any potential conflicts of interest, I would have referred the matter to the AGC," she tells Shafee
Najib left a cabinet meeting in 2012 due to conflict of interest - witness3.44pm - Former cabinet deputy secretary-general Mazidah Abdul Majid testifies that then-premier Najib Abdul Razak had left a cabinet meeting on Nov 23, 2012, due to conflict of interest
During examination-in-chief by DPP Muhammad Izzat Fauzan, the witness tells the High Court that it is a practice for cabinet ministers to declare their interest and leave the meeting if needed to avoid conflict of interest
She says the cabinet minister could then return to the meeting after other ministers had deliberated on the matter in the discussion which posed a conflict of interest
"Najib Abdul Razak had also left a (cabinet) meeting. According to records of the Cabinet Department, he left a cabinet meeting on Nov 23, 2012 when the meeting was discussing a memorandum involving CIMB Bank Bhd," she reads out from her 35-page witness statement
Najib's brother Nazir Razak was the chief executive officer of CIMB Group in 2012
Mazidah tells Izzat that other cabinet ministers such as Khairy Jamaluddin and Hishammuddin Hussein (above) had also left cabinet meetings when they discussed matters which may involve a conflict of interest
"During the MJM (Bahasa Malaysia acronym for cabinet meeting) on April 26, 2017, youth and sports minister Khairy Jamaluddin, left the meeting when a memorandum by the prime minister (Najib) was tabled
"During a MJM on Dec 14, 2016, defence minister Hishammuddin Hussein left the meeting when a memorandum was tabled by the prime minister (Najib)," she says
However, she does not reveal what were the matters that caused the two then ministers to excuse themselves from cabinet meetings to avoid conflict of interest
'Cabinet approved RM100m short-term gov't loan to SRC'3.30pm - The cabinet chaired during a meeting on Nov 6, 2015 had approved an RM100 million short-term government loan to SRC International for the company to service its loan with KWAP, the High Court hears
Mazidah Abdul Majid, who is a retired cabinet deputy secretary-general, testifies that a memorandum by Finance Ministry was tabled by then second finance minister Ahmad Husni Hanadzlah during the meeting chaired by then prime minister Najib Abdul Razak for the cabinet to consider giving the loan
According to the prosecution's 40th witness, the purpose of the government loan was stated as payment for interest and late charge on KWAP's RM4 billion Bai' Al-Inah loan facility
She tells the court that among justifications given in the memorandum included, to prevent KWAP from terminating its loan agreement and trigger event of default, which would, in turn, cause the government to have to take over full repayment of SRC International's loan as its guarantor
"This situation would give impact to the country's fiscal position and the government's annual budget planning," Mazidah says in reading her witness statement
According to Mazidah, the loan to SRC International was approved by the cabinet meeting without any discussions among cabinet members in attendance as there was no such note to suggest that in the meeting's minute
Cabinet also committed to gov't guarantee for second RM2b loan sans discussion2.45pm - Retired cabinet deputy secretary-general Mazidah Abdul Majid testifies that the cabinet passed a resolution to provide a government guarantee for the second tranche of an RM2 billion loan from Retirement Fund Incorporated (KWAP) to SRC International without any discussion by ministers present
During examination-in-chief by DPP Muhammad Izzat Fauzan, the 40th witness says that the resolution was approved without discussion during the Feb 8, 2012 cabinet meeting chaired by then prime minister and finance minister Najib Abdul Razak
"There was no discussion during the cabinet meeting (which took place on Feb 8, 2012)
"If there had been a discussion, the minutes would mention it," Mazidah testifies
SRC International was granted a loan totalling RM4 billion from KWAP
The first tranche of RM2 billion was granted in August 2011, and the second tranche of RM2 billion was granted in March 2012
As then finance minister, Najib headed the Minister of Finance Incorporated (MoF Inc)
At the time of the loans, SRC was a subsidiary of 1MDB, which in turn was owned by MoF Inc
Mazidah testifies that among ministers present at the cabinet meeting were then deputy prime minister Muhyiddin Yassin; then home minister Hishammuddin Hussein; then information, communications and culture minister Rais Yatim; then minister in prime minister's department Nor Mohamed Yakcop; then rural and regional development minister Mohd Shafie Apdal; and then international trade and industry minister Mustapa Mohamed
Other ministers present were then defence minister Ahmad Zahid Hamidi, then health minister Liow Tiong Lai and then human resources minister S Subramaniam. 2.40pm - Proceedings resume with the examination-in-chief of the 40th witness, retired cabinet deputy secretary-general Mazidah Abdul Majid
1pm - Proceedings break for lunch, and are expected to resume at 2.30pm this afternoon
Cabinet committed to gov't guarantee for RM2b loan without discussion12.45pm - The court moves on to the next witness, former cabinet deputy secretary-general Mazidah Abdul Majid
She testifies that, at a meeting in 2011, the cabinet passed a resolution to provide a government guarantee for SRC International to secure a RM2 billion loan without any discussion by ministers in attendance
Furthermore, she states the minutes of the cabinet meeting did not show that any discussion had taken place regarding the matter
The cabinet meeting was held on Aug 17, 2011, and was chaired by then premier and finance minister Najib Abdul Razak
According to Mazidah, a memorandum had been received from the Finance Ministry
The memorandum was meant for the cabinet to discuss a guarantee for SRC International to acquire a RM2 billion loan from market sources or domestic financial institutions, in order to finance its activities in the natural resources sector
Apart from this, the memorandum was meant to secure tax exemptions for SRC International, and for then prime minister Najib Abdul Razak to be given the power to determine the terms and conditions of the loan
"There was no discussion by the cabinet (regarding the memorandum), because if there were any, it would appear in the meeting's minutes
"Such a note does not exist in these minutes," she says
Witness: If SRC board didn't listen to Najib, we would be removed12.15pm - Members of SRC International's board of directors only had two options if they refused to abide by minutes containing advice from then prime minister Najib Abdul Razak - resign, or be removed.This is revealed by the former 1MDB subsidiary's chairperson Ismee Ismail during re-examination by DPP Ishak Mohd Yusoff
Ishak: What would have happened if the board did not abide by the minutes
Ismee: It is hypothetical now. Either (the members of the board of directors would have to) step down or we would be removed
In earlier testimony, the court heard that then finance minister Najib was the advisor emeritus of SRC International
In accordance with Article 117 of the company's Memorandum and Articles of Association, Najib's advice on material and strategic matters regarding the company had to be seriously considered and implemented by the board. Are you asking about J Lo or Jho Low, witness asks DPP11.10am - Those present at the SRC International trial in Kuala Lumpur High Court are in stitches when DPP V Sithambaram repeatedly refers to 1MDB-linked businessperson Low Taek Jho (below) as "J Lo" instead of "Jho Low".This prompts lead defence counsel Muhammad Shafee Abdullah to tell Sithambaram that he is supposed to be referring to Jho Low
J Lo is most commonly known as a nickname for American singer Jennifer Lopez
However, it appears that Sithambaram initially does not realise his mistake as he goes on to defend his reference to Low while re-examining witness Ismee Ismail
Sithambaram: My learned friend (defence counsel) Harvinderjit (Singh) yesterday asked you some questions, and I want to ask you again just to clarify. He asked you whether Jerome Lee, Terrence Geh and Nik Faisal were close associates of J Lo. And you say now you know that they are (close associates)
Ismee: Yes, yes
Sithambaram: What was the designation of Datuk Seri Najib Abdul Razak in 1MDB
Ismee: (He was the) chairperson of 1MDB's board of advisers
Sithambaram: What was the post (or) position of J Lo in 1MDB's board of director
Ismee: No position in 1MDB
Sithambaram: I want to ask the same question as Harvinderjit. From what you know, is Najib a close associate of J Lo
Ismee: I wouldn't know
This prompts Shafee to correct Sithambaram
Shafee: It's Jho Low
Sithambaram: Yes, J Lo
The DPP's reply then causes many in the courtroom to burst into laughter, before the witness Ismee, who is former chairperson of SRC International, also chimes in
Ismee: You asked (me) about J Lo or Jho Low
SRC not compelled to follow Najib's advice, witness agrees10.22am - Former SRC International chairperson Ismee Ismail agrees with the defence that Article 117 of SRC International's Memorandum and Articles of Association does not compel the company's board to follow then prime minister and advisor emeritus to the company Najib Abdul Razak's advice on how the company is managed
During cross-examination by lawyer Muhammad Shafee Abdullah, the 39th witness agrees that this differs from Section 3 of the Petroleum Development Act 1974, whereby Petronas is subject to the control and direction of the prime minister
Shafee: Referring to Article 117, whereby the prime minister was appointed as advisor emeritus, (with regard to) the prime minister's advice, the board shall give consideration and implement any advice in the best interests of the company
This is different from Section 3, which is a mandatory direction (from the prime minister on Petronas)
Article 117 is still (in line) with the Companies Act, (to act) in the best interests of the company
Ismee: Yes.Ismee also says that while he was SRC chairperson, he saw nothing wrong with following Najib's advice, as represented by then company CEO Nik Faisal Ariff Kamil, as it was perceived to be in the best interests of the company
SRC finance head may have misled CEO on audit submission - witness10am - SRC International's former CEO Nik Faisal Ariff Kamil might have been misled by its then finance director Terrence Geh about the submission of the company's audited financial report for 2013, the High Court hears
The prosecution's 39th witness Ismee Ismail tells the court that this could also be the case why the board was misled into believing that the report had been submitted to the Companies Commission
Ismee, who was the company's chairperson, gives this testimony during cross-examination by lead defence lawyer Muhammad Shafee Abdullah (below)
Shafee: Now Tan Sri, this is important, I hope you don't get uncomfortable. The court will decide on Najib's fate. (Defence lawyer) Harvinderjit Singh has taken you on in several instances. Do you believe - when Nik Faisal says this audited account, it was inadvertent, when he falsely reported to the board that the audited account had been submitted - would you believe him
Ismee: What I can recall, what I believe then, is that he may have also been misrepresented by Terrence who prepared the account
Shafee: Terrence, what is his full name
Ismee: Terrence Geh
Witness: In hindsight, I wouldn't have joined SRC board9.50am - Prosecution witness Ismee Ismail (below) tells the High Court that he would not have accepted the appointment to become SRC International Sdn Bhd's board member if he had known about issues of dishonesty concerning the former 1MDB subsidiary's CEO Nik Faisal Ariff Kamil then
This testimony comes from Ismee after he agrees with defence lawyer Muhammad Shafee Abdullah that he has a different view of Nik Faisal today
Shafee: Do you agree with me that the honesty of the CEO, in this case Nik Faisal, is of the utmost importance for the board to function
Ismee: Yes
Shafee: He must be candid, (engage in) full disclosure, and be honest for the board to make decisions
Ismee: Yes
Shafee: You have no difficulty with the board. But trusting Nik Faisal..you had no issue trusting him at the time
Ismee: No
Shafee: It's accurate to say that today you have a different view of Nik Faisal, after much exposure. We have showed you documents, proof
Ismee: Yes
Shafee: With the benefit of hindsight, if you had known then (what you know now), you would be more careful
Ismee: I would not have accepted the appointment (to SRC International's board of directors), even
Shafee: Why
Ismee: Why should I
Shafee: You must have a reason
Ismee: Susah nak percaya (It would be hard to trust)
Shafee: The board can't function (without the honesty of the CEO)
Ismee: Yes
Rosmah leaves court after prosecution questions presence9.38am - Najib Abdul Razak's wife Rosmah Mansor exits the court after DPP V Sithambaram raises the question of whether it is proper for her to be in the same court as her husband, as she is a potential witness in the case
She is seen standing up from the front row of the public gallery and leaving the court together with her lawyer K Kumaraendran
Immediately prior to that, Sithambaram informs the court that as Rosmah's statement had been recorded, it would be prudent for her not to be in court to avoid future problems
"Rosmah Mansor is in court. She is a potential witness in this case, her witness statement was recorded
"We do not wish for any problems later. We do not wish to be seen as being difficult. It is just a matter of procedure," says Sithambaram
Najib's lawyer Muhammad Shafee Abdullah then informs the court that he will leave it to Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali to make a decision on the matter
Rosmah arrives at court9.22am - Clad in a red baju kurung, Najib Abdul Razak's wife Rosmah Mansor enters the courtroom
She takes a seat at the front row of the public gallery, right behind the dock where her husband sits while proceedings are underway
Najib's lead counsel Muhammad Shafee Abdullah is cross-examining former SRC International chairperson Ismee Ismail
SRC ex-CEO had 'a good family background'9.20am - The High Court hears from a witness that former CEO of SRC International Sdn Bhd, Nik Faisal Ariff Kamil, was the grandson of former Kelantan Menteri Besar and Dewan Rakyat Speaker, Nik Ahmad Kamil
The mention of Nik Faisal's lineage comes about during the cross-examination of Ismee Ismail, who is the company's former chairperson, when defence lawyer Muhammad Shafee Abdullah questions Ismee about the qualifications of those who sat on SRC International's board of directors
While testifying that he does not know who appointed Nik Faisal as CEO and managing director of the company, Ismee agrees to Shafee's suggestion that Nik Faisal came from a good background and possessed good qualifications
Shafee: Do you know how Nik Faisal was appointed
Ismee: To SRC? No idea
Shafee: You didn't try to find out
Ismee: No
Shafee: He was a young man. How old was he
Ismee: If you ask me to guess... I never thought of asking (about) his age. I think he was 46
Shafee: So he should be more than 46 now. How old are you
Ismee: 54.Shafee: (Do you know) Nik Faisal's family background and so on
Ismee: Who was his late grandfather... if I'm not mistaken, his (Nik Faisal's) grandfather was former speaker or Kelantan MB
Shafee: So his late grandfather Nik Kamil was the first Malay speaker (of the Dewan Rakyat)
Ismee: I think so. He came from a good family background
Shafee: And Nik Kamil was also former MB of Kelantan
Ismee: Yes
Shafee: You would agree he came from a well-regarded family in Kelantan
Ismee: Yes
Shafee: And (in) Malaysia
Ismee: Yes
Ismee then concurs with a suggestion by Shafee that Nik Faisal was not just someone who was plucked out of nowhere to be SRC International CEO and managing director, as he had good qualifications and came from a good background
Najib enters the dock9.07am - Najib Abdul Razak steps into the dock as proceedings begin.9am - The accused enters the court and takes a seat in the front row of the public gallery to await the start of proceedings.Also seen in court is his lead counsel Muhammad Shafee Abdullah and the defence team, as well as DPP V Sithambaram and others comprising the prosecution team
Today marks the seventh day that former SRC International chairperson Ismee Ismail will take the stand in former prime minister Najib Abdul Razak’s trial for alleged abuse of power, corruption, and money laundering of RM42 million from SRC International.When the 27th day of the hearing begins before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali at 9am today, 39th witness Ismee will again face a grilling from Najib’s defence lawyer Harvinderjit Singh
After Harvinderjit wraps up his cross-examination, Najib’s lead counsel Muhammad Shafee Abdullah is expected to take over the questioning of Ismee, as Harvinderjit informed the judge at the end of yesterday's proceedings
In the course of the periodically contentious questioning, which saw Harvinderjit and Ismee clash more than once since Tuesday last week, the witness had yielded peeks into the inner workings of SRC International, a former 1MDB subsidiary which became fully owned by the Minister of Finance Incorporated (MoF Inc) in 2012
Najib, who was then head of MOF Inc, currently faces one count of abuse of power, three counts of graft and three counts of money laundering involving the RM42 million, Yesterday, the heated cross-examination by Harvinderjit led to Ismee testifying that SRC International’s board of directors (BOD) had taken then premier Najib to be the equivalent of the government, in relation to the process in approving the company’s application for a loan from Retirement Fund Incorporated (KWAP) involving a second tranche of RM2 billion, among others
Despite Harvinderjit’s insistence that that Najib was merely part of the larger government machinery, Ismee kept saying that the accused was, for all intents and purposes, the government. The witness said this was based on the representation by SRC International’s then chief executive officer Nik Faisal Ariff Kamil to the company’s BOD
Currently missing and wanted by the authorities to assist in the ongoing 1MDB probe, Nik Faisal has been the target of the defence’s line of cross-examination, with Ismee being bombarded with questions on whether Nik Faisal lied to SRC International’s BOD over several key matters in the financial management of the company
 - Mkini

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