BNM suggested that 1MDB top officials be charged over scandal, Zeti tells court

Former Bank Negara Malaysia (BNM) governor Zeti Akhtar Aziz told the Kuala Lumpur High Court for the first time that the central bank had recommended that the three top officials of 1MDB be charged over the company’s scandal.

The three individuals were then 1MDB CEO Shahrol Azral Ibrahim Halmi, former chief investment officer Nik Faisal Ariff Kamil and former executive director Casey Tang Keng Chee.

Zeti, 76, said her request for the trio to be charged was made to then attorney-general Mohamed Apandi Ali, but no action was taken.

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

Last month, Zeti testified that the investigation paper submitted by BNM to the Attorney-General's Chambers with the recommendation to initiate criminal prosecution and to charge 1MDB, including the senior officers, was classified as no further action (NFA).
 
Zeti said that despite all of the evidence gathered and recorded by BNM in the investigation paper on 1MDB, Apandi, for reasons unknown, had on Sept 11, 2015 decided that it would be classified as NFA.

During today’s proceedings, when asked by Shafee if she had ever seen or come across any role played by Najib in the remittance of the US$1 billion to the 1MDB-PetroSaudi joint venture company to the wrong entity, Zeti said Najib’s role was submitting the guarantee to the Cabinet for the approval.

"That (guarantee) was one of the reasons BNM approved the remittance. The 1MDB board of directors had approved it, the Cabinet had approved it. He (Najib) guaranteed the investment. 

"1MDB is a company 100% owned by the finance ministry, there’s no reason for BNM not to approve it," said Zeti.

Shafee: You are not suggesting that Najib did it with dishonest intentions?

Zeti: As it turned out, there was no such investment (joint venture company).
 
Shafee: But who provided all of the information about the joint venture investment to Najib?

Zeti: This is a company 100% owned by the finance ministry.

Zeti added that as Najib had held the executive position as chairman of the 1MDB board of advisers, he should have been aware of what investments were supposed to take place.

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 today.