EX-1MALAYSIA Development Bhd (1MDB) director Ismee Ismail told the court that he remained with the sovereign wealth fund after its chairman resigned as he still trusted and was loyal to Najib Razak.

The 13th prosecution witness said this during re-examination by lead prosecutor Gopal Sri Ram in the former prime minister’s 1MDB corruption trial at the Kuala Lumpur High Court today.

“In that climate after Mohd Bakke Salleh’s (1MDB chairman) resignation when you continued to be there, what was the attitude of the board to any wish that came from the accused as prime minister?” Sri Ram asked Ismee.

Ismee replied that at the time, he still had a high degree of trust.

“I cannot recall specifically. Generally, from my perspective, in the early days of 2009, when we did the PetroSaudi International (PSI) Ltd transaction, I thought it would be a good transaction for us.

“In my capacity as Tabung Haji CEO and dealing with Saudi authorities, (PSI) was a good opportunity to enhance ties with the Saudis.

“(I) did not expect there to be fraud or misfeasance. At the time, I had a high degree of trust in the leadership and loyalty to the prime minister.

“(That is why) I did not do a Bakke,” he said, in reference to following in Bakke’s footsteps and resigning from the board.

Bakke was 1MDB chairman in 2009. He resigned from his post twice – once on April 7, 2009, and again on October 11, 2009 – alleging that management did not follow his orders.

He was unhappy that US$700 million (RM2.9 billion) of the US$5 billion Islamic medium-term loan raised by the fund for the purpose of a joint venture with PSI was diverted to Good Star Ltd, a company controlled by Low Taek Jho.

Sri Ram asked Ismee about the climate in the company between 2009 and 2016.

“Were you in a position to go against or contradict the wishes of Najib as to the way 1MDB should run?”

Ismee said he “supposed” that he could have.

Sri Ram then asked whether the witness had any personal knowledge of any arrangement between Low and Najib on how the money (siphoned from 1MDB) was to be shared between them.

Ismee replied in the negative.

Najib, 68, is facing four charges of using his position to obtain RM2.3 billion in bribes involving 1MDB funds and 21 charges of money-laundering involving the same amount. – April 7, 2022.