Najib Denies Discussing TIA’s Transition into 1MDB with Jho Low
Najib Testifies in Court
Datuk Seri Najib Tun Razak, the first defence witness and former prime minister, testified in the High Court today that he never discussed the transition of the Terengganu Investment Authority (TIA) into 1Malaysia Development Berhad (1MDB) with fugitive businessman Low Taek Jho, also known as Jho Low or former Second Finance Minister Tan Sri Nor Mohamed Yakcop.
Consistent Support for TIA Remaining Under Terengganu’s Control
Najib maintained that he consistently supported TIA remaining under Terengganu’s control. He informed the Cabinet that the Ministry of Finance favours the second option, which is for Menteri Besar Terengganu Incorporated (MBTI) to exercise complete control of TIA with a back-to-back guarantee by the Federal government.
The June 17, 2009 Cabinet Meeting
During the June 17, 2009 cabinet meeting, Najib informed the Cabinet that the Ministry of Finance favours the second option. He stated, "If Jho Low were truly conspiring with me to ensure that TIA evolved to 1MDB and if there were discussions on this matter between me, Jho Low, and Tan Sri Nor Mohamed in the past, then there would be no need for such an elaborate letter trying to convince me and him (Nor Mohamed) to agree to evolve TIA to 1MDB."
The Idea of Federalising TIA
Najib explained that the idea of federalising TIA was raised after its then-chief executive officer, Datuk Shahrol Azral Ibrahim Halmi, wrote to him and Nor Mohamed on May 25, 2009, highlighting internal conflicts between TIA’s management and MBTI. Shahrol Azral proposed transforming TIA into 1MDB, modelled after Abu Dhabi’s sovereign wealth fund, Mubadala.
Letter Drafted by Shahrol Azral and Jho Low
Najib revealed that it only came to his attention during the trial that the letter was drafted by Shahrol Azral and Jho Low at the latter’s residence. Shahrol Azral believed there had been discussions between him, Nor Mohamed, and Jho Low regarding the conversion of TIA into 1MDB, placing it under the Federal government.
Questioning Shahrol Azral’s Claim
Najib questioned Shahrol Azral’s claim that he had delegated the drafting of letters to Jho Low, solely based on an alleged close relationship between them. He pointed out that if his relationship with Jho Low was indeed so close, then Shahrol Azral, who had the authority to hire management personnel, should have appointed Jho Low as his assistant or consultant.
Conclusion and Implications
The trial before Justice Datuk Collin Lawrence Sequerah continues.
FAQs
- What is the purpose of the trial?
The trial is to determine the guilt or innocence of Datuk Seri Najib Tun Razak in relation to the 1MDB scandal. - Who is Jho Low?
Jho Low is a fugitive businessman, also known as Low Taek Jho, who is accused of being involved in the 1MDB scandal. - What is the significance of the June 17, 2009 cabinet meeting?
The June 17, 2009 cabinet meeting is significant because it was during this meeting that Najib informed the Cabinet that the Ministry of Finance favours the second option, which is for Menteri Besar Terengganu Incorporated (MBTI) to exercise complete control of TIA with a back-to-back guarantee by the Federal government.