2 weeks Ago By Rahmat Khairulrijal
PUTRAJAYA: Bank Negara Malaysia (BNM) had no authority to question 1Malaysia Development Bhd's (1MDB) sudden decision to split a US$1 billion (RM4.37 billion) remittance for a joint venture (JVA) with PetroSaudi International Ltd (PSI), the High Court heard today.Former Deutsche Bank Malaysia Bhd (DBMB) chief executive officer Raymond Yeoh Chen Seong testified that the central bank had effectively distanced itself from the controversial transfer when asked to clarify a last-minute change in recipient accounts.
"I personally called BNM's former Foreign Exchange Administration Department officer, Wan Hanisah Wan Ibrahim, to explain the new remittance instructions."Wan Hanisah said it was not for BNM to comment, and that it was a business decision by 1MDB," he said.Yeoh was testifying as a defence witness in Datuk Seri Najib Razak's corruption trial involving the alleged misappropriation of billions in 1MDB funds.
It was heard during the trial that the US$1 billion transaction was intended as a joint venture between 1MDB and the Saudi-based PSI in 2009.The funds were initially meant to be remitted into a BSI Bank account under the JV company. However, on the eve of the transfer, 1MDB Treasury executive Stephenny Chow instructed the bank to split the funds into two tranches - US$700 million to RBS Coutts Bank Ltd and US$300 million to J.
P. Morgan SA.The change deviated from both 1MDB's board resolution and BNM's original approval.
Yeoh said DBMB conducted compliance checks on the new recipients, which Chow identified as 1MDB PetroSaudi Ltd and PetroSaudi International Ltd.Under the JVA signed on Sept 28, 2009, 1MDB injected US$1 billion for a 40 per cent stake in the company, while PetroSaudi Holdings (Cayman) contributed its so-called assets worth US$2.7 billion for a 60 per cent stake.
In a previous hearing, police investigating officer R. Rajagopal testified that the US$700 million remittance was authorised by former 1MDB executive director of business development Tang Keng Chee, who was also known to be an associate of Low Taek Jho.Tang is believed to have disappeared after being found to have committed an offence under Section 23 of the Malaysian Anti-Corruption Commission Act 2009, and Section 28 of the same Act, in 2018.
Najib faces four charges of using his position to obtain RM2.3 billion in bribes from 1MDB funds, and 21 charges of money laundering involving the same amount.The trial before presiding judge Datuk Collin Lawrence Sequerah continues.
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