FORMER 1Malaysia Development Bhd (1MDB) chief financial officer (CFO) Azmi Tahir today admitted he did not exercise any due diligence on entities that received monies from the state investment funds, the Kuala Lumpur High Court heard. 

Azmi, the prosecution’s 12th witness, told during cross-examination by counsel Wan Aizuddin Wan Mohammed that he did not take any initiative to investigate the authenticity of Aabar Investment PJS Ltd – two fake shell companies under the same name, with one incorporated in the British Virgin Islands (BVI) and the other incorporated in Seychelles – to which 1MDB transferred a huge sum of money in 2014. 

The “real Aabar”, the subsidiary of International Petroleum International Co is Aabar Investments PJS, without the “Ltd”. 

Azmi, 48, said he did not proceed with any investigation because he was not instructed by anyone, even by the board, despite him being the signatory to these funds.

Wan Aizuddin: Do you agree there was a major difference in the address of Aabar Investment PJS Ltd and the real Aabar? 

Azmi: Yes. It’s different. 

Wan Aizuddin: Didn’t you realise the difference when looking at the documents then?

Azmi: No. No one brought it up as well. We had lawyers, bankers, advisers… We had about 30 to 40 eyes looking at the documents but no one highlighted. 

Wan Aizuddin: It’s not a good exercise. You did not perform your due diligence.

Azmi then said that his task was only to disburse funds as instructed by the board.

Azmi, who served as a CFO for 1MDB until December 2017, said he only came to know about the “fake Aabar” in 2015 when he was informed by the Malaysian Anti-Corruption Commission during investigation. 

Previously, the High Court heard that 1MDB subsidiary, 1MDB Energy Holdings Limited, obtained a US$975 million (RM4.1 billion) loan from Deutsche Bank in 2014. 

The loan was initially intended to be paid for the real Aabar but it was revealed that the loan was never used to pay back the Aabar options. 

It was revealed that about US$175 million from the bridging loan was instead channelled to Aabar BVI, while US$681 million went to Aabar Seychelles in September 2014. 

On the first day of the trial, the prosecution had said it would prove some of the funds that were transferred to the two fake Aabar entities had in 2014 allegedly made its way to accused Najib Razak’s bank account in 2014, namely two separate sums in sterling pounds that were equivalent to RM4.1 million and RM45.8 million.

Meanwhile, to another question on whether he was answering to his then deputy Terence Geh Choh Heng’s instructions, Azmi said he just followed orders, believing that it came from Najib through fugitive financier Low Taek Low or Jho Low.

Wan Aizuddin: You, as the CFO, answered to your deputy? 

Azmi: Not answering but things I believe came from Jho Low, who represented Najib.

Wan Aizuddin: You followed Terence’s instruction but between you and Terence, you are superior? 

Azmi: Yes, on paper he was my deputy. We worked in silos in line with a directive by Jho Low.

Later, another of Najib’s lawyers, Mardhiyah Mohamed Sirajkumar, also accused Azmi of working in cahoots with Low and Geh to misappropriate millions from 1MDB. 

Azmi, who was bombarded with multiple questions on this, denied those allegations. 

Najib is standing trial for corruption over the misappropriation of RM2.28 billion in 1MDB funds. 

He faces 25 charges – four for abuse of power and 21 for money-laundering – for offences committed between 2011 and 2013.

The hearing before Justice Collins Lawrence Sequerah continues on Wednesday. – April 18, 2022.