Bank Negara has no say in 1MDB's US$1bil fund split, court told
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
China urges US to ‘look at the whole picture' on tariffs to see true trade ties
The envoys of the world's two leading powers painted starkly different pictures of US-China ties, each offering a competing assessment of the state of their economic relations – as a recently agreed framework to ease trade tensions hung in limbo. Speaking at the US-China Business Council in Washington on Wednesday, Chinese ambassador Xie Feng called the trade relationship 'generally balanced' and tariffs on Chinese imports 'still unreasonably high', warning that the US goods deficit would not shrink while export controls, visa denials, and barriers to Chinese firms persist. 'We are willing to buy more from America,' Xie said, adding that 'unfortunately' the US had imposed 'strict restrictions on the exports of its most competitive products, such as semiconductors, and shut the door on Chinese enterprises, buyers, tourists and students who want to invest and spend in the US'. 'If one is reluctant to sell others what they want, how can it ever get its deficit reduced by exporting only products like soybeans and beef?' Since 2022, the US has steadily tightened restrictions on China's access to American technology over concerns it could fuel military advancements. These curbs intensified under US President Donald Trump's second term. However, earlier this month, the US agreed to ease some restrictions and allow Chinese students unhindered access to American universities in exchange for increased exports of critical minerals from China. Talks between the two sides in London produced a framework to implement the trade consensus reached in May in Geneva regarding Trump's new tariffs on Chinese imports – now reduced from 125 per cent to 55 per cent. Xie said the current US tariffs on China were 'still unreasonably high, will severely constrain and undercut bilateral trade and should be removed completely'. He added that it was 'unrealistic to try to block the flow of capital, technology and talents in a globalised world, if any country builds up barriers, these resources will naturally flow elsewhere'. Since June last year, the China-US trade has dropped by 8 per cent, while China's trade with the Association of Southeast Asian Nations and EU countries grew by 9 per cent and 3 per cent, respectively compared to the same period last year. Meanwhile, David Perdue, America's newly posted ambassador to Beijing, said that trade should be a means by which sovereign nations provide benefits to their citizens, 'not an ideological goal to be pursued in favour of transforming the world'. He added that Trump's vision was to have a trading relationship with China based on reciprocity, fairness and respect, 'one of which the United States puts the American people first, just as China does for its own people'. 'Our mission in China is to do everything we can to make that vision happen and to make America safer, stronger and more prosperous,' Perdue emphasised, blaming unfettered globalisation for making US business 'overly dependent' on China for components, inputs, intermediate goods and even entire supply chains. 'Our economy cannot be so dependent on foreign supply chains that can be severed at any moment,' he said. Addressing US businesses' concerns about losing the Chinese market due to strained bilateral relations, Perdue said that the administration understands the 'risk of change' and 'we will be there to support you and protect you from unfair practices'. However, Xie urged the US to 'look at the whole picture' to see that 'the benefits our two countries have taken from bilateral trade are generally balanced'. 'Any selective reading of the statistics would be misleading,' he added. Xie said that focusing only on goods trade overlooked the US surplus in services, American firms' strong revenues in China, the heavy environmental and resource costs China has borne, and the fact that the 'Chinese people have chosen to spend much of the trade gains buying a large amount of US Treasury bonds'. After Japan and Britain, China is the third-largest holder of US Treasuries – government debt securities used to finance federal spending. In December last year, China's holdings fell to US$759 billion, the lowest level since February 2009, when they stood at US$744.2 billion. By March, China had slightly reduced its holdings again, to US$765.4 billion. The senior officials' remarks came weeks after the latest US-China trade talks in London. The meeting was believed to focus on semiconductors and critical minerals, areas in which Washington and Beijing hold significant leverage over each other, respectively. Yet neither Beijing nor Washington has released an official readout of the dialogue since the negotiations ended, hinting at considerable uncertainty. Delegations from both sides said the trade agreement would require approval from their leaders, US President Donald Trump and Chinese President Xi Jinping. Shortly after the negotiations, Trump on social media said a deal with Beijing was 'done', adding that China would supply full magnets and any necessary rare earths 'up front'. Beijing has yet to issue a comprehensive response regarding its take on the talks, nor has Xi commented on them publicly. Meanwhile, US investor sentiment towards China has declined sharply. According to a survey last month by the China General Chamber of Commerce-USA, nearly half of the more than 100 Chinese companies who responded said they planned to reduce their investment in the US. The shift was also evident last month at the Commerce Department-backed SelectUSA Investment Summit, where only about 50 Chinese delegates attended, down from roughly 180 in 2018. Xie's remarks also came against the backdrop of escalating tensions between Israel and Iran. The Jewish state last week launched air strikes on the Islamic Republic, targeting Iranian nuclear facilities amid ongoing nuclear talks between Washington and Tehran. Israel's strikes have led to the deaths of multiple Iranian army heads and nuclear professionals. In retaliation, Iran carried out air strikes against Israel, causing casualties in Tel Aviv. Trump has issued ambiguous messages about whether the US would join Israel in striking Iran, a prospect that has stirred divisions in Washington and among his own supporters. On social media, Trump claimed the US knew the exact location of Iranian Supreme Leader Ali Khamenei, hinting at a possible assassination and calling on Tehran to surrender unconditionally. Tehran responded that it would not surrender. In China, Xi affirmed Beijing's willingness to mediate the crisis in a development anticipated by many as the country seeks greater visibility and sway in the Middle East. Foreign Minister Wang Yi has reached out to regional stakeholders, including his counterparts in Israel, Iran, Egypt and Oman. Wang has called for peace and condemned Israel's attacks. -- SOUTH CHINA MORNING POST
Sinar Daily
3 hours ago
- Sinar Daily
Bomb threat diverts plane of hajj pilgrims in Indonesia
The email contained a threat to "blow up" Saudia Airlines flight SV 5276 which was flying from the Saudi city of Jeddah to the Indonesian capital Jakarta. 17 Jun 2025 04:56pm Drone footage captured today, 12 Dhu Al-Hijjah (June 8, 2025), at approximately 4pm, shows footage of the Grand Mosque in Makkah. - Photo by Bernama JAKARTA - A plane carrying hundreds of hajj pilgrims back from Saudi Arabia was diverted in Indonesia on Tuesday after an email bomb threat was sent to authorities, Indonesia's aviation body said. The Directorate General of Civil Aviation said it received a report from Indonesia's airport operator "regarding a bomb threat sent by an unidentified person via electronic mail". The email at 07:30 am (0030 GMT) contained a threat to "blow up" Saudia Airlines flight SV 5276 which was flying from the Saudi city of Jeddah to the Indonesian capital Jakarta, it said in a statement. Pilgrims from around the world made their way to the Jamrah to perform the stoning ritual. - Photo by Bernama After 10:00 am the pilot diverted the plane from its destination of Jakarta's Soekarno-Hatta International Airport to Kualanamu International Airport in Medan, a city on Sumatra island in western Indonesia. The flight was carrying 442 hajj pilgrims, including 207 men and 235 women, it added. "Upon identifying security and safety threats, the pilot decided to divert the landing to the nearest airport," said InJourney Airports, Indonesia's airport operator. A transport ministry official told AFP the plane was still in Medan and Flightradar24 showed the plane there. The airport evacuated the pilgrims and a bomb disposal unit swept the plane for explosive devices, the aviation body said in its statement. - AFP
The Sun
7 hours ago
- The Sun
Malaysia–US tariff talks making good progress
KUALA LUMPUR: Malaysia's discussions with the United States (US) Trade Representative and the US Secretary of Commerce on ongoing tariff-related negotiations have made good progress, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz He said both Malaysia and US representatives have expressed their intention to finalise negotiations before the expiry of the 90-day pause on tariff implementation, and agreed to intensify efforts to reach an agreement acceptable to key stakeholders in both countries. In a statement today, he highlighted that the US has been one of Malaysia's top three export markets over the past decade. 'In May 2025, exports to the US recorded the eighth consecutive month of double-digit growth,' he said. A significant share of Malaysia's exports to the US supports and complements US domestic industries in sectors such as electrical and electronics (E&E), semiconductors, medical devices, machinery, equipment, and parts. Malaysia also serves as a key supplier of intermediate goods to US-based manufacturing industries. 'MITI has remained steadfast in upholding Malaysia's interests in all trade and investment relations, particularly in safeguarding the integrity of Malaysia's domestic commitments and sovereign rights,' he added. He further stated that MITI anticipates the negotiations will help secure Malaysia's supply chains and deliver positive spillovers to local businesses, especially small and medium enterprises (SMEs), while also creating more high-paying jobs for Malaysians. 'These efforts will further strengthen Malaysia's position as a preferred investment destination in the region and drive the MADANI economic transformation agenda towards becoming a high-tech, high-income nation,' said Tengku Zafrul. Tengku Zafrul led a working visit to Washington, US, from June 18-20, 2025. The visit focused on continuing US tariff-related engagement and negotiations with US Trade Representative Jamieson Greer and US Secretary of Commerce Howard Lutnick. He was accompanied by MITI's chief negotiator, the Deputy Chief of Mission from the Embassy of Malaysia, and MITI officials based in Washington.
