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1MDB set up as BN political fund, ex-top civil servant tells Najib trial

Mohd Sidek Hassan says he never asked former prime minister Najib Razak or anyone in 1MDB about problems in the company.

Bernama
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Former prime minister Najib Razak arrives at the Kuala Lumpur court complex today. Photo: Bernama
Former prime minister Najib Razak arrives at the Kuala Lumpur court complex today. Photo: Bernama

Former chief secretary to the government Mohd Sidek Hassan told the Kuala Lumpur High Court today that according to his understanding, strategic investment company 1MDB was set up as a political fund for the ruling party at the time, Barisan Nasional.

Sidek, 71, said that as such, he had never asked former prime minister Najib Razak or any party in 1MDB about the problems in the company.

He said the issues that troubled 1MDB were only known to him through the mass media such as newspapers and the internet, adding that he was aware that they were related to allegations of misuse of funds.

“I was also aware from newspaper reports that investigations into 1MDB were being conducted by local agencies such as the Malaysian Anti-Corruption Commission (MACC), but I was never briefed or given further details on them.

“I can confirm that Najib, as prime minister (then), never informed me of issues in 1MDB although I had been appointed as a member of the 1MDB board of advisers.

“I also never asked Najib why there were no 1MDB board of advisers meetings held throughout my time as a member and (why) no 1MDB representatives had reported to me on operations and investments made by the company,” he said.

Sidek said this when reading his witness statement during examination-in-chief by deputy public prosecutor Mohamad Mustaffa P Kunyalam at Najib’s trial over the misappropriation of RM2.3 billion in funds from 1MDB.

Meanwhile, the 19th prosecution witness said he was of the opinion that his appointment as a member of the 1MDB board of advisers was only to supplement his income as chief secretary to the government, which he said according to Najib was considered low.

“When Najib was prime minister, he once asked me about my salary as chief secretary to the government, and he felt that it was quite low,” Sidek, who held the post of chief secretary to the government from September 2006 to June 2012, added.

On his appointment as a member of the 1MDB advisory board, Sidek said it was made official through a letter issued by Najib dated Aug 30, 2012.

“Although I was appointed as a member of the 1MDB advisory board, I was never involved in any meetings or discussions on the company’s issues and was never invited to attend 1MDB’s annual meetings.

“I also never asked Najib or 1MDB to be appointed as a member of this advisory board,” he said.

Sidek said he received an allowance of RM30,000 per month throughout his initial tenure as a member of the 1MDB advisory board.

“After I retired as chief secretary to the government, I was still receiving an allowance of RM10,000 per month until I no longer held this position in June 2015,” he said.

Sidek said that on June 2, 2016, he received a letter from 1MDB CEO Arul Kanda Kandasamy informing him that the 1MDB advisory board had been dissolved.

“I was not informed through this letter about why the 1MDB advisory board was dissolved and I also did not know why it was dissolved. I did not ask Najib and 1MDB why the advisory board was dissolved,” he said.

Najib, 68, faces four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount.