FORMER Bank Negara Malaysia (BNM) governor Zeti Akhtar Aziz today revealed at the Kuala Lumpur High Court that the central bank had in fact recommended a penalty amounting to RM23 million against 1Malaysia Development Bhd (1MDB) but the attorney-general (AG) then reduced the fine to RM15 million.

The 76-year-old witness said, in order to impose a penalty, BNM needed the consent of the AG at the material time.

“The AG refused the amount recommended by us. We (BNM) recommended RM23 million. However, the AG reduced it to RM15 million,” she said.

The 46th prosecution witness said this when asked by Najib Razak’s lead counsel Muhammad Shafee Abdullah at the former prime minister’s trial involving the alleged misappropriation of RM2.3 billion of 1MDB funds.

Mohamed Apandi Ali was attorney-general at the time.

In her witness’s statement, Zeti said 1MDB’s inability to bring the monies back and provide evidence on the status of the funds resulted in a compound imposed on the sovereign wealth fund. 1MDB paid the compound on May 25, 2016.

Shafee: Were there any attempts by the then finance minister (Najib) to waive this fine imposed on 1MDB?  

Zeti: I have no knowledge of it.

Zeti insists while AmBank did inform her that Najib would be opening an account with the bank, but said the bank’s then managing director Cheah Tek Kuang did not tell her that incoming donations were expected.

She also maintained that the central bank does not conduct due diligence on individual accounts and that it was the duty of the respective financial institution to do that.

Zeti’s testimony contradicts Cheah’s previous testimony as the 39th prosecution witness in the same 1MDB trial, where the latter said he had told Zeti about the purported incoming “donation”.

Cheah on October 4, 2022, told the High Court he had heeded the AmBank chairman’s instruction and gone to Najib’s house in early 2011 to help the latter with bank account opening documents. Najib claimed that there would be a US$100 million donation coming in from the Saudi government for him, for the purpose of Islamic activities.

Najib, 70, faces four charges of using his position to obtain bribes amounting to RM2.3 billion belonging to 1MDB and 21 charges of money laundering involving the same amount.

The trial before judge Collin Lawrence Sequerah continues tomorrow. – Bernama, August 28, 2023.