FORMER 1Malaysia Development Bhd (1MDB) adviser Mohd Sidek Hassan told the court today his RM29,125 salary as then chief secretary to the government (KSN) was insufficient and was the reason why Najib Razak appointed him to 1MDB.

His fee of RM30,000 to sit on the firm’s advisory board was told to the Kuala Lumpur High Court yesterday.

Today, Sidek said he believed that Najib had given him a role in 1MDB with the RM30,000 salary “out of the goodness of his heart”.

“So, out of the goodness of his heart I thought this was just a vehicle for compensation,” he said at Najib’s trial for misappropriating 1MDB funds. 

Sidek said yesterday that the then prime minister felt his income as the chief secretary was “too low”. 

Revealing the amount of his salary as KSN today, 71 year-old Sidek said he also feels it was inadequate for his duties.

“I thought the reason the PM offered me that was because of my salary… I hate this because it appeared in all the papers again today.

“My thinking was that the PM thought that for the responsibility that I had, the salary was low,” he said during cross-examination by Najib’s lawyer Muhammad Shafee Abdullah. 

Sidek was chief secretary to the government from September 2006 until he retired in June 2012. 

Yesterday, Sidek said he was appointed by Najib to the 1MDB board of advisers in 2010.

Sidek then said that the Finance Ministry-owned company had never sat for a single meeting throughout the years he served as a board member. 

Despite not doing anything as an adviser, he said received a monthly salary of RM30,000 as an advisory fee as Najib felt his salary as KSN was “too low”. 

Sidek received a fee of RM30,000 every month from July 2010 to December 2012. 

The amount was then reduced to RM10,000 per month from January 2013 to June 2015.

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 allegedly committed between 2011 and 2013.

As then chief secretary to the government, Sidek was asked today by the prosecution if Najib had told any cabinet meeting about his relationship with fugitive businessman Low Taek Jho, also known as Jho Low.

Sidek said he does not remember.

Lead prosecutor Gopal Sri Ram then asked Sidek how he came to the conclusion that 1MDB was formed as a political fund for Barisan Nasional.

Sidek replied that this was because ministers were encouraged to propose projects that could fund 1MDB.

“In a cabinet discussion, for example, there was an issue of funds involving 1MDB and the ministers were encouraged to suggest proposals that could be used (to fund its projects),” said Sidek.

Sidek was then released from the witness stand. Former finance minister II, Ahmad Husni Mohamad Hanadzlah, is expected to appear before judge Collin Lawrence Sequerah at 2.30pm. – June 8, 2022.