In Najib's 1MDB trial, Zeti says Singapore never acted against family for any wrongdoing

KUALA LUMPUR, Aug 14 — Former Bank Negara Malaysia (BNM) governor Tan Sri Zeti Akhtar Aziz today said that Singapore had never acted against her family for any wrongdoing there, as she fended off the defence’s attempt to cast doubt on her credibility as a witness in court in the trial against former prime minister Datuk Seri Najib Razak.

Zeti, who is turning 76 this year and was BNM's second-longest serving governor at 16 years, was testifying as the 46th prosecution witness in Najib's trial over the misappropriation of RM2.26 billion of 1Malaysia Development Berhad (1MDB) funds.

Najib's lead defence lawyer Tan Sri Muhammad Shafee Abdullah asked Zeti if she was aware that Singapore authorities had communicated its “discomfort” and findings that her husband and two sons had received money in Singapore via a company.

Zeti said she has no knowledge about this, adding that she only knew that her husband owned an asset management company which received money from investors for investments. Later in the afternoon, she said this asset management company is named Ayman Capital.

Shafee told the High Court that his questions were relevant to the charges faced by Najib in this trial, as his questions would affect Zeti's credibility if those money came from Low Taek Jho or Jho Low as he is better known.

Quizzed by Shafee about her family members' company or their related accounts, Zeti said she had never been confronted by enforcement agencies on this matter and did not know there was ever an inquiry in Singapore about this.

She said that Singapore – where the bank accounts were located – had never taken action against her family members.

“All I know is the accounts were not in the Malaysian jurisdiction and therefore I knew nothing about it, and in the jurisdiction where it is; this particular jurisdiction wants to be recognised as having the highest standards of integrity.

“Therefore I would like to say, at no time was any action ever taken on any member of my family for any wrongdoing in their jurisdiction,” she testified, referring to Singapore which she said wishes to be recognised for having the highest standards of integrity in its financial system and overall economy.

Deputy public prosecutor Kamal Baharin Omar objected to Shafee's persistent questions regarding Zeti's family members, saying such questions should not be allowed as they amount to a collateral attack.

Judge Collin Lawrence Sequerah said he would only allow Shafee's questions to the extent that it is relevant to her credibility as a trial witness, but said the questions should not go beyond that.

Zeti said that Singapore had never taken action against her family members.

According to Zeti, it was actually her husband who had voluntarily reported to Singapore's financial authorities about funds in his company's accounts, after “it became apparent” from open source information that “these monies were dubious and could be suspicious”.

She claimed that her husband had then “reported in writing to the financial institution regarding these and requested for them to be returned to the investor, and failing to do so, they should forward it to the authorities in that jurisdiction”.

Zeti said she believed that funds were sent back to Malaysia as a result of her husband's instruction.

She told the court that there are documents about it, but said she had not seen and does not have them, adding that she only knew about the matter after her husband told her.

“This matter now is pending investigation by the police in Malaysia and therefore I'm not at liberty to comment anymore,” she also said at one point.

Addressing the court, Shafee said the alleged document should be considered hearsay until Zeti's husband is called to testify in court.

Zeti also said this investigation has been ongoing for many years and she has not been following it.

She also said she had beentold that the investigation only involves one of her two sons as the other was still studying.

“I'm not aware of the subject matter of the investigation, it has been ongoing for many years and I have been focused on where I have accountability when I was in the central bank, that has been my focus of attention,” she testified.

Zeti also said she had never seen the Malaysian Anti-Corruption Commission's March 3, 2022 statement regarding her husband Datuk Tawfiq Ayman's Cutting Edge Industries Ltd's account.

Asked by Shafee about transactions involving Cutting Edge Industries and how it might be related to 1MDB, Zeti said she does not know about these transactions.

“All I know is that no one in my family has ever taken a single cent of the 1MDB monies,” she said.

Najib, who is currently serving time in Kajang Prison after being convicted for misappropriating RM42 million belonging to former 1MDB subsidiary SRC International Sdn Bhd, appeared in the dock today.

He wore a light brown suit. His wife Datin Seri Rosman Mansor, dressed in red, was also seen in the courtroom

Later in the afternoon, Zeti said she does not know of any linkages between Ayman Capital and her family members' companies Cutting Edge and Iron Rhapsody.

Asked by Shafee about a news report which claimed her husband Tawfik and Low Taek Jho were "believed" to be partners in a company called Abu Dhabi Kuwait Malaysia (ADKMIC), Zeti said she has no knowledge of this.

Zeti said she was aware that the police had recorded her husband's statement, but said she was "never investigated" and was also "not interviewed by the police at any time".

As for whether her two children's statements were recorded by investigators, Zeti said: "No, not that I know of."

She also confirmed her husband and two children had never been charged in court: "Yes, they have not been charged in any other jurisdiction as well or in the Malaysian jurisdiction."

At one point, Zeti said she was looking forward to the conclusion of the police's investigations into the allegations surrounding her family members' companies' accounts and that all the questions that Shafee was asking her would be answered.

Shafee then suggested that the investigations have yet to conclude because Zeti is allegedly "being protected by certain personalities", but Zeti shot down this claim by saying: "I have no protection, I'm just an ordinary citizen. I have no protection from anyone."

Earlier, Shafee claimed that Singapore police had in 2015 informed BNM about her family members' accounts relating to Iron Rhapsody and Cutting Edge, but Zeti said she was not aware, pointing out that the Financial Intelligence Unit (FIU) in BNM is an independent unit and that any information received by FIU would automatically go directly to law enforcement agencies without passing through BNM's management.

She agreed with Shafee that the BNM governor will not know about information received by the FIU.

Shafee: It doesn't matter whether the information is about your husband or your son or anybody else?

Zeti: Yes, and the prime minister.

Stressing the independent nature of the FIU when saying it would not tell even the BNM governor about suspicious transactions, Zeti also said: "Especially if it concerns the governor, they are not by law supposed to tip off anyone."

She said Malaysia's laws requires the FIU to forward information on suspicious transactions --- received either from banks in Malaysia or a foreign authority — directly to law enforcement agencies and to nobody else.

Shafee suggested that the FIU would give information on suspicious transactions to her, but she disagreed, saying: "That is not correct, especially if it concerns or it is related to me, they would not, because you are not allowed to inform any person who is related to the information."

The lawyers representing BNM in holding a watching brief today in the 1MDB trial are G. Rajasingam, Nik Azila Shuhada Nik Abdullah, Justin Tong Wei Hang and Ong Tze Xian.

Lawyer Datuk Joshua Kevin Sathiaseelan held a watching brief for Zeti.

Najib's 1MDB trial resumes tomorrow, with Shafee expected to continue cross-examining Zeti.