NAJIB Razak used over RM655,000 of 1Malaysia Development Bhd (1MDB) money to hire a media consultant to answer questions on the sovereign fund’s acquisition of overpriced independent power plants (IPP), the Kuala Lumpur High Court was told today.

Former 1MDB chief executive officer Mohd Hazem Abdul Rahman testified that the former prime minister had hired a consultant named Romen Bose to craft answers for the opposition and international media on the IPP.

He said Najib’s special officer Wan Ahmad Shihab had explained Bose’s role in a 2013 email thread, which was forwarded to him via fugitive businessman Low Taek Jho, also known as Jho Low.

“In this email, Wan Shihab had explained Romen Bose’s profile, whereby Najib had contacted him to answer on behalf of the government 1MDB issues which had been brought up by the opposition at the time. 

“The questions attached were from Romen Bose to help him prepare Najib to respond to the international media,” Hazem said today while reading out his witness statement. 

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

Hazem was hired as the chief operating officer in 2012 before becoming CEO in March 2013 replacing Shahrol Azral Ibrahim Halmi until 2015.

He said the 1MDB management had to go through the list of questions first before sending it back to Low, who would vet it and then send it back to Bose.

“In Jho Low’s email, he asked the 1MDB management to quickly answer the questions before he vets through it, before handing it back to Bose,” Hazem said.

Among the questions Bose sent were:

“Why are Ananda (Krishnan) and Genting’s power company’s price-to-book value higher than in the region?”

Low’s suggested answer: “The government is in the process of restructuring the IPP sector that is controversial before the concession contract expires in 2016 and 2017, this is why we have to pay a premium.”

“Nik Nazmi (Nik Ahmad) claims that it is cheaper to build a new plant rather than buying from Genting. Is it true? If this is not true, then it may look as if the government is trying to bail out cronies?”

Low’s suggested answer: “It is not true because the profit outweighs the amount paid to Genting and Ananda.”

“Why is the Goldman Sachs fee so high (US$200 million)? Is it because the deal is done under the radar?

Low’s suggested answer: “The fee was high as it was a difficult/complex transaction.”

“Is it true that the deal is under the radar in the first place? Why was it not done in an open market where the fees could be more competitive?”

Low did not have an answer for that. 

Hazem said the answers Low gave were aimed to deceive and hoodwink the public from the truth of the IPP purchases. 

“In my opinion as CEO then, the answers given by Low were excuses and statements created to avoid issues surrounding the acquisition of Genting Sanyen and Tanjong Energy,” he said. 

The 47-year old also claimed he did not voice out anything then as he was afraid he would lose his job and had to beef up Low’s answers.

“My friends and I at 1MDB had to add on to the answers given by Low to give a convincing reply. “I was afraid to reveal my honest opinions as I was still beholden to 1MDB and was afraid it would affect my position since I did not support Najib who was prime minister at the time,” Hazem said.

Najib had paid RM655,000 to Bose’s consultancy Nevis Associates Ltd. Bose was a former journalist who set up the Foreign Correspondents Club of Malaysia. 

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. 

Najib faces up to 20 years imprisonment, if convicted. The trial resumes tomorrow. – September 14, 2020.