KUALA LUMPUR: Fugitive businessman Low Taek Jho had given instructions for Datuk Seri Najib Razak not to "talk so much" in a 2013 meeting to discuss 1Malaysia Development Bhd's (1MDB) audit.
The meeting was held with the company's appointed audit firm KPMG, Malaysia.
This was revealed by Azmi Tahir, who was the former 1MDB chief financial officer (CFO).
Azmi, who was testifying in the former prime minister's trial over the misappropriation of RM2.28 billion funds from 1MDB, said Jho Low had conveyed the instructions via an email dated Dec 15, 2013.
The contents of the email, which was entitled "Urgent Briefing Package for YAB PM", included key points to be discussed with KPMG as the firm was going to query about the investments made by the company.
Azmi said he also received the email, in which Jho Low had laid out strategies for the meeting which among others included that it must be attended by the board of directors chairman, the chief executive officer (CEO) and the CFO representing the management of 1MDB together with Najib.
Jho Low also arranged for only Datuk Johan Idris and Ahmad Nasri Abdul Wahab to attend the meeting on behalf of KPMG.
"Jho Low had also instructed Najib to not talk so much with KPMG and that it must be stated that Najib was well aware of all the investments and transactions in 1MDB and that he was confident with the documents at hand.
"Jho Low had also instructed Najib to express confidence for the BSI Bank based on the facts given," he said.
The meeting was held because KPMG wanted to hear Najib's explanation on the investment at the Segregated Portfolio Company (SPC) in Cayman Islands and to hear what Najib knows about 1MDB's investments overseas especially the one by Brazen Sky Ltd.
Previously ninth prosecution witness former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi testified that Brazen Sky was a Special Purpose Vehicle (SPV) company set up by Jho Low and his associates to repatriate 1MDB's investment in PetroSaudi Oil Services Ltd (PSOSL) to Malaysia.
According to Azmi, the meeting which was held at Najib's house was attended by the KPMG representatives, then 1MDB chief executive officer Mohd Hazem Abd Rahman, then 1MDB chairman Tan Sri Lodin Wok Kamaruddin, Najib and himself.
He said for the 2013 audit, KPMG had among others wanted a detailed confirmation on the USD$2, 318,000,000 under Brazen Sky Ltd as well as the facts on the assets under the company's investment.
This, he said, was to confirm the exact amount of the investment.
The 12th prosecution witness told the court that when he went to Najib's house on Dec 15, 2013, for the meeting with KPMG, Najib had already received Jho Low's email.
"The matters that Jho Low stated in the email has already been discussed by Najib and Johan from KPMG.
"Johan had asked Najib on the investment at SPC and Najib replied that he knew about Brazen Sky's investment at SPC," he said.
He said during the meeting Najib had also asked KPMG why it kept raising suspicions about the underlying assets of the investment when BSI Bank had shown the statement for the investment.
Subsequently, he said Najib told KPMG to close the 1MDB account before Dec 31, 2013.
Azmi said he found that although he was the CFO in which audits falls directly under his purview, it was Jho Low who had arranged all the documentations and talking points to Najib to answer to the questions raised by KPMG.
He said after the meeting, KPMG did not close off on 1MDB's financial year 2013 audit report because it was not satisfied with the documents and answers provided by 1MDB.
"As far as I know the matter was then brought up in the management meeting and the decision was to replace KPMG with Deloitte," he said.
The trial before judge Datuk Collin Lawrence Sequerah continues this afternoon.
Najib, 68, is charged with 25 counts of abuse of power and money laundering involving RM2.28 billion of 1MDB funds which were deposited into his accounts between 2011 and 2014.
He faces 20 years' jail and fine, if convicted.