‘We felt intimidated over orders to sign off 1MDB audit’

KPMG partner tells court about meeting at former prime minister’s residence

KPMG Malaysia managing partner Datuk Johan Idris yesterday described the instruction of Datuk Seri Najib Abdul Razak to the audit firm to complete and sign off on its audit of 1Malaysia Development Berhad’s (1MDB) 2013 financial statement within two weeks as a form of intimidation.

He said this when re-examined by lead prosecutor Datuk Seri Gopal Sri Ram at the former premier’s trial over the alleged misappropriation of RM2.3 billion of 1MDB funds yesterday.

The 14th prosecution witness was queried about the meeting which took place on the night of Dec 15, 2013 at Najib’s residence at Jalan Langgak Duta.

The 45-minute meeting was between KPMG with Johan as its sole representative, 1MDB and Najib himself.

Sri Ram: You were asked to confirm that the minutes of the meeting do not show there was any pressure exerted by the accused Najib upon you at this meeting. You were there, at ground zero, so was there any pressure at all?

Johan: I put it (as) intimidation ... Intimidation for us to conclude and signed the audit statement ending March 31, 2013.

Sri Ram: From whom did this come?

Johan: Najib.

At this juncture, Najib’s counsel Wan Aizuddin Wan Mohammed stood up and objected to the witness’ answer as the word “intimidation” was never raised by the witness in any of his answers.

However, High Court Judge Datuk Collin Lawrence Sequerah asked the defence to put forth its submissions.

Previously, the court heard that KPMG had yet to sign off on the audit for 1MDB’s financial statement for the financial year ending March 31, 2013 as 1MDB had yet to provide the information that KPMG had been asking for since April 2013.

Based on the minutes of the meeting that Johan had typed out himself, he noted that Najib had asked for KPMG to sign the audit by Dec 31, 2013.

The High Court was told yesterday that the 1MDB board of directors held a meeting in London on May 16, 2011 to discuss the agreement regarding the additional RM1 billion 1MDB-PetroSaudi investment joint venture under the Murabaha financing scheme.

Former 1MDB company secretary Goh Gaik Kim, 54, who was also present at the meeting, along with Tan Sri Che Lodin Wok Kamaruddin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Jasmine Loo Ai Swan and Ashvin Jethanand, said arrangements to hold the meeting at Hilton Hotel, London were made by the 1MDB management.

The 17th prosecution witness was reading from her witness testimony at the trial of Najib over charges of embezzling 1MDB funds worth

RM2.4 billion.

Referring to the meeting’s minutes dated May 16, 2011, she said that before the meeting began, Loo, who was the lawyer for 1MDB, had handed three sets of documents to her for safekeeping – the board of directors’ resolution, the ordinary shareholders’ resolution and the preferred shareholders’ resolution.

“The documents relate to the Investment of an additional RM1 billion under the Murabaha Financing Agreement with 1MDB Petrosaudi. All the documents were already signed by the 1MDB board of directors and Datuk Seri Najib (Razak). However, the matter (the documents) were not discussed during the meeting,” she said.

She testified that at the meeting, several important matters were discussed, including the presentation made by Loo about the Murabaha financing scheme.

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