KUALA LUMPUR: Datuk Seri Najib Razak's alleged lack of action in recovering 1Malaysia Development Bhd's (1MDB) US$1 billion that had been funnelled out of the country, and former 1MDB chief executive Datuk Shahrol Azral Ibrahim Halmi's role in the scandal became an explosive topic at the High Court here this afternoon.
This happened when former second finance minister Datuk Seri Dr Ahmad Husni Hanadzlah insisted that Najib, who was his boss at the ministry, did not lift a finger to recover the money despite having the power to do so as the prime minister then.
Earlier, Husni also disputed Najib's lead counsel Tan Sri Muhammad Shafee Abdullah's argument that Shahrol was acting like a criminal in 1MDB.
The exchange between the duo started when the senior counsel raised Shahrol's name while cross examining Husni on the mismanagement in 1MDB.
However, Husni disputed this and countered by asking Shafee on Najib's decision to appoint Shahrol into the Prime Minister's Office (PMO) after the 1MDB CEO was removed in 2016.
Husni: If he was a criminal why is it that when he was terminated, he was then appointed to work in the PM's Office?
Shafee: At that time he was not called a criminal yet... only now Bakke (former 1MDB chairman Tan Sri Mohd Bakke Salleh) said he is a criminal
At this point, Husni became unhappy and asked Shafee not to shout.
However, Shafee said he was not doing it to disrespect the witness.
Shafee: No, Datuk Seri I am not shouting (at you). I am similarly complaining that I cannot hear you
Husni: Ok then you buy this (pointing to the microphone in front of him}
Shafee: My voice is loud... everyone knows this... I don't even have to use the microphone... it is not out of disrespect.
Shafee then continued to touch on Shahrol's role and how even the former auditor general (AG) had complained about the 1MDB management's uncooperative attitude.
Shafee: Even the AG complained but surely you cannot link this to Najib
Husni: He (Najib) was the (1MDB) chairman...he could have acted
Shafee: The board did take action, they ordered the management to get the money back but nothing happened
Husni: Najib never worried about that. I met him several times even though he told me not to interfere... only in 2016 he terminated Shahrol and brought in Arul (Arul Kanda Kandasamy).
Shafee: He (Najib) can only act through the company isn't it?
Husni: He was the PM, he can take action... he can call the management but no action (was taken). If I was the PM I would have acted immediately
Shafee: We are arguing over this but are you aware that the board demanded for action but the management gave all sorts of excuses?
Husni: There are two different things... this was going to affect the country's budget and have a multiplier effect. If the board did not work he should have removed them.
Shafee: You are insulting the PM
Husni: I am telling it from my perspective
Shafee: Nobody is questioning it... of course, even I admit losing US$1 billion caused a tremor to the country's financial position. However, all I am saying is that your suggestion that the money could have been recovered without the involvement of the company (1MDB) is not correct
Shafee ended his cross examination and Husni will be re-examined by lead prosecutor Datuk Seri Gopal Sri Ram tomorrow.
The trial is being held before High Court judge Datuk Collin Lawrence Sequerah.