1MALAYSIA Development Bhd (1MDB) was formed to fund former prime minister Najib Razak’s party, Umno, former chief executive officer of the sovereign fund Mohd Hazem Abdul Rahman testified before the Kuala Lumpur High Court today.

He said fugitive businessman Low Taek Jho, also known as Jho Low, told him this in their first meeting before he joined the state-owned company as the chief operating officer back in 2012.

“Jho Low informed me the real reason 1MDB was formed was to help Umno via businesses involving 1MDB’s strategic investments.

“However, he did not say how exactly he will use 1MDB to fund Umno,” Hazem said when reading out his witness statement today.

Hazem is the 10th prosecution witness in the graft trial against Najib, who is on trial for four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount.

Hazem added Low told him 1MDB was fully controlled by Najib, who was then finance minister and sat on 1MDB’s board.

“Jho Low also informed me this was a company fully controlled by Najib, where any decision is under his absolute power,” he said.

He said Low explained to him 1MDB was one of the ways used by Najib to fund Umno when he was the party president as the MOF Inc-owned company was fully under his purview.

“Jho Low himself has reminded me that Najib formed 1MDB to take care of Umno funds and this was one of the methods to obtain political donations via a company supervised by the PM himself,” Hazem said.

Hazem, who was promoted to 1MDB CEO in 2013, said he was never allowed to question any of 1MDB’s investments as it was agreed on by Najib to channel money to Umno.

“I have to agree because Jho Low informed me that all funds issued through 1MDB investments overseas are for Umno interests and I cannot question that,” he said.

Hazem today managed to read out 107 points out of his 284-point witness statement. He will continue to read the rest of it tomorrow before judge Collin Sequerah.

The defence had previously tried to stop him from reading some parts of the witness statement on the grounds that they contained hearsay evidence.

This means the witness has no direct knowledge of the matter but was relying on something told to him.

The judge allowed the witness to read his witness statement in full for now and will rule on its admissibility at the end of the prosecution case.

The defence once again said all the claims are hearsay as they cannot get Low to verify these allegations.

Najib is on trial on four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount. He faces up to 20 years’ imprisonment, if convicted. The trial resumes tomorrow. – September 14, 2020.