PENANG businessman Low Taek Jho was at Najib Razak’s house when a senior AmBank official went there to help the former prime minister open bank accounts in early 2011, the Kuala Lumpur High Court heard today.

Former AmBank group managing director Cheah Tek Kuang said the bank began its involvement with 1Malaysia Development Bhd in 2009 when the sovereign wealth fund became a corporate client.

Cheah said he was approached in early January 2011 by AmBank relationship manager Joanna Yu, who told him that Najib had expressed interest in opening savings and current accounts with the bank.

After obtaining approval from AmBank chairman Azman Hashim, Cheah said he contacted Najib’s principal private secretary, Azlin Alias, for a time and venue for a meeting with the then prime minister.

Cheah said he was provided by Yu with copies of bank account and credit card opening forms.

“In the middle of January 2011, around 7pm, I was taken by car to Najib’s personal residence at No. 11, Jalan Langgak Duta, Kuala Lumpur, to discuss the opening of the said accounts.

“Once I arrived… I met with Mr Low Taek Jho, who is also known as Jho Low, whom I had previously met.

“I was then taken into the residence by Jho Low, who introduced me to Najib.

“Najib and I proceeded to the guest room, while Jho Low waited in a different part of the residence.”

Cheah said he explained the procedures of opening bank accounts to Najib, and stressed that they must be followed.

“And (I told him), I am obligated to inform the central bank about the opening of the said accounts, because Najib is a politically exposed person,” he said, adding that Najib then proceeded to sign the forms.

During cross-examination by the defence later, he said he was not aware that Low would be at Najib’s house that night.

Cheah said he was informed by Najib that the latter was expecting political donations from Saudi Arabia.

Najib did not mention an exact figure, but said it would be “in the region of US$100 million to US$200 million”, he said.

Cheah said Najib told him to follow all the rules and comply with standard operating procedures when opening the accounts.

He said his meeting with Najib lasted about 20 minutes, and he was driven home.

The following day, he gave the signed forms to Yu, to proceed with the opening of the accounts and credit card.

Cheah said Low influenced a decision to not include Najib’s name on his current account number ending with “694”, and to use a code name instead.

“In relation to the ‘AmPrivate Banking-MR’ code name used for the above-mentioned current account, this code name is reserved for this current account (belonging to) Najib.

“I was informed by Ms Joanna that the reason for the code name was based on a query by Jho Low, who requested that the account be dealt with, with the strictest confidence.

“I am not sure who decided the exact code name to be used for this account. I only know that there were discussions to use a code name for the protection of information and to maintain sensitivity.

“I subsequently informed the governor of the central bank of this matter.”

At a meeting with former Bank Negara Malaysia governor Zeti Akhtar Aziz, Cheah said there were no objections to the opening of the accounts, but he was reminded that banking rules and regulations must be heeded.

“After the opening of the said accounts, I was usually updated by Ms Joanna and her team, who acted as the relationship manager for the accounts. As far as I can recall, there were many transactions for the accounts, but I did not keep a record of them.”

He said he was no longer informed of actions taken in relation to Najib’s accounts after he retired in 2012.

Cheah testified that he was a member of the Retirement Fund Inc (KWAP) investment panel that approved the first loan of RM2 billion to SRC International Sdn Bhd that was disbursed on August 29, 2011.

He corroborated previous testimonies that the first loan was for investment in natural resources and related industries, and not anything else.

He said the total loans required a government guarantee before they could be approved, due to SRC International’s paid-up capital of just RM2.

“In my experience as a member of the KWAP investment panel, the two separate loans given to SRC International, amounting to RM4 billion, made up one of the largest loans ever agreed to and approved by KWAP.”

Najib ‘very annoyed’ at 1MDB news

Earlier today, another witness testified that Najib appeared “very annoyed” after news on the 1MDB scandal broke in mid-2015.

Former Yayasan Rakyat 1Malaysia (YR1M) CEO Ung Su Ling told the court that she met the former prime minister some time after The Wall Street Journal ran an exposé in July 2015 on the alleged misappropriation of funds linked to 1MDB, as well as its former unit SRC International.

When cross-examined by defence counsel Harvinderjit Singh, Ung described Najib as being visibly agitated when they met.

Harvinderjit: When was the first time you found out that the accounts belonged to Najib?

Ung: Maybe in the latter part of the year, a few months later. I did meet up with Najib later.

Harvinderjit: Najib was in utter shock that the money came into his account?

Ung: Yes.

Harvinderjit: He didn’t know that the money came from IPSB (Ihsan Perdana Sdn Bhd)?

Ung: I am not exactly sure that was what he said. What he did say was, it was very damaging to him, his reputation and his career, and yes, he said he didn’t know that the monies were being transferred into his account. But, I don’t remember if he said he didn’t know that the money from IPSB came into his account.

Harvinderjit: Did he express utter shock?

Ung: He was very annoyed. I did apologise, and I offered to resign (as YR1M CEO).

Najib was expressionless as he sat in the dock during Ung’s testimony.

The court previously heard that transactions amounting to RM42 million were made from SRC International corporate responsibility partner Ihsan Perdana to Najib’s accounts.

The transactions were: RM27 million on December 26, 2014 to Najib’s AmIslamic Bank account ending with “880”; RM10 million on December 26, 2014 to Najib’s AmIslamic Bank account ending with “906”; and, RM5 million on February 10, 2015 to the account ending with “880”.

The private account numbers were previously identified by AmBank manager R. Uma Devi as belonging to Najib.

The charges against the ex-prime minister are linked to RM4 billion in loans issued to SRC International in 2011 and 2012, for which he is accused of receiving RM42 million in his personal accounts in 2014 and 2015.

He faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power. The 66-year-old faces up to 20 years’ imprisonment upon conviction.

Najib is represented by a dozen lawyers, led by Muhammad Shafee Abdullah. Attorney-General Tommy Thomas leads the prosecution, while justice Mohd Nazlan Mohd Ghazali presides.

The trial continues tomorrow morning. – July 17, 2019.