Najib not behind federalisation of TIA, court told

KUALA LUMPUR: The idea to federalise the Terengganu Investment Authority (TIA) in order to salvage it from its internal strife did not come from Datuk Seri Najib Razak, the High Court was told on Thursday (Aug 22).

Instead, it was the then TIA CEO Datuk Shahrol Azral Ibrahim Halmi who was “very eager” about the federalisation of the state government investment arm, which later turned into 1Malaysia Development Bhd (1MDB).

Najib’s lawyer Wan Azwan Aiman Wan Fakhruddin said that TIA had been bogged down with an internal tug-of-war between its management and Mentri Besar Terengganu Inc (MBTI), which owned TIA, and endured the displeasure of the then Yang di-Pertuan Agong Sultan Mizan Zainal Abidin (of Terengganu), who had expressed his disagreement on the company’s governance structure.

Wan Azwan was making his submission at the end of the prosecution’s case in Najib’s RM2.28bil 1MDB trial here on Thursday.

Najib’s defence team contended that it was Shahrol who had been persistently urging the Minister of Finance Inc (MOF Inc) to take over all the shares of TIA from MBTI, as one of the three options that were discussed to mitigate the situation.

Wan Azwan said Shahrol’s persistence was evident from his repeated correspondences with Najib, in which he also recommended himself (Shahrol) to Najib to continue with the management of 1MDB.

“The benefit of hindsight and these recorded events clearly show that the federal government was unwillingly dragged into the internal tussle between the management of TIA and its special shareholder MBTI and by extension, the YDPA.

“The situation pushed Najib, then the prime minister, into damage-control mode,” the lawyer said.

Wan Azwan said Shahrol’s pursuit over the federalisation of TIA should not be ignored by the court.

“Shahrol’s repeated calls to Najib for federalisation dispel two important misconceptions; one that TIA’s federalisation was part of Najib’s grand scheme for gratification and the other that his decision therein was never predicated on both compelling and legitimate reasonings,” he said.

Wan Azwan further submitted that the limb of the first charge faced by Najib could not be used to invoke the presumption under Section 23(2) of the Malaysian Anti-Corruption Commission (MACC) Act 2009, given that there was a lack of a demonstrable personal interest by Najib in the decision to federalise TIA.

“In fact, without it, the entire alleged offence fails,” he said.

Najib, 71, is on trial for 25 charges in total – four for abuse of power that allegedly brought him the financial benefit to the tune of RM2.28bil; and 21 for money laundering involving the same amount of money.

The four counts of power abuse were framed under Section 23(1) of the Malaysian Anti-Corruption Commission Act (MACC) 2009 which provides for imprisonment of up to 20 years and a fine of up to five times the amount or gratification, or RM10,000, whichever is higher, upon conviction.

For the 21 charges of money laundering, Najib is charged under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act (AMLATFA), which carries a maximum fine of RM5mil and imprisonment for up to five years, or both, upon conviction.

The hearing before Justice Colllin Lawrence Sequerah continues this afternoon.