A FORMER 1MDB director of investments testified in the high court today that his former company was suing him for fraud and negligence.

Kelvin Tan Kay Jin told the Kuala Lumpur High Court that 1Malaysia Development Bhd (1MDB) had alleged that he had committed fraud leading to 1MDB suffering US$1 billion in losses.

Tan is the eighth prosecution witness of the 1MDB audit report trial that resumed this morning after a hiatus of nearly six months.

Currently a consultant with the World Bank economic development unit, the 50-year-old was testifying against former prime minister Najib Razak.

Najib, 68, is charged with using his position to order amendments to the 1MDB final audit report before it was presented to the Parliament’s Public Accounts Committee (PAC) to avoid any action being taken against him.

Co-accused ex-1MDB chief executive officer, Arul Kanda, 46, is charged with abetting Najib in making the amendments to the report to protect the latter from being subjected to legal action.

Tan revealed that he was being sued by 1MDB during the cross-examination by lead defence counsel Muhammad Shafee Abdullah.

Shafee: Are you being sued by 1MDB?

Tan: Yes.

Shafee: You’re obviously an articulate person, intelligent, so why are you being sued?

Tan: Most likely they have made a mistake, the suit has no merit.

Shafee: What did they allege you of doing?

Tan: They alleged that I made some fraud leading to 1MDB suffering US$1 billion in losses.

It was earlier reported that 1MDB had filed a U$8 billion suit against Najib and 13 others for fraudulent breach of duties and breach of trust.

Aside from this, Tan also testified that fugitive businessman Low Taek Jho, better known as Jho Low, was present in a special meeting of the 1MDB board of directors on September 26, 2009.

Tan was the person who wrote the minutes of the meeting and placed Low under “by invitation only”. However, Tan had no idea why Low was in attendance at the meeting despite holding no official role in the company.

Tan only recalled that Low passed a mobile phone to then 1MDB chairperson Mohd Bakke Salleh.

“Bakke was surprised that it was the prime minister (Najib),” Tan said. He also recalled Low saying, “I understand that I have to play a role in the board of advisors.”

Later, the ninth prosecution witness, former cabinet deputy secretary Mazidah Abdul Majid, took the stand.

She was present at a cabinet meeting on March 4, 2015, during which Najib’s cabinet had agreed for the National Audit Department (NAD) to check the accounts of 1MDB that had been audited by Deloitte Malaysia.

“The cabinet agreed that the auditor-general examine the audit report by Deloitte Malaysia and verify the accounts of 1MDB and subsequently submit the audit report to the Public Accounts Committee,” Mazidah read her the cabinet minutes in her witness statement.

The court adjourned today at 1.25pm and the trial will continue before high court judge Mohamed Zaini Mazlan on September 9.

The prosecution indicated that there are six other witnesses lined up to testify.

Najib is still challenging the appointment of former Federal Court judge Gopal Sri Ram as the lead prosecutor in his 1MDB-related cases, including this case.

The appeal for the judicial review is currently due to be heard by the Court of Appeal on September 23.

Najib and Arul are charged under Section 23(1) of the Malaysian Anti-Corruption Commission (MACC) Act 2009, which provides for a jail term of up to 20 years and a fine of not less than five times the amount of gratification or RM10,000, whichever is higher, upon conviction. – August 12, 2021.