KUALA LUMPUR: The 'working in silo' ethics practiced in 1Malaysia Development Bhd (1MDB) was a reason why the sovereign wealth fund failed as a company, the High Court was told.

       Najib's lead counsel Tan Sri Muhammad Shafee Abdullah said this when questioning former 1MDB non-executive director Tan Sri Ismee Ismail on the work ethics of the company's former top men who testified on the stand on Monday (March 21).

       They were former CEOs Datuk Shahrol Azral Ibrahim Halmi and Mohd Hazem Abd Rahman and former chief financial officer (CFO) Azmi Tahir.

       Muhammad Shafee said the three witnesses were 'parroting' the same line of 'working in silo' throughout their witness statements.

       Muhammad Shafee: As a corporate governance person, have you heard of this working in silo?

       Ismee: Of course I've heard of the term working in silo, but in general context. Not specifically in any organisation.

       Ismee agreed with Muhammad Shafee that working in silo was not a good practice in the corporate field because it hindered communication, which the witness said was key to transparency.

       Muhammad Shafee: And that is something completely discouraged because secrecy breeds corruption, breeds fraudulent behaviour in any corporation. Working in silo, therefore, is the breeding ground for a corporation to be corrupted, to be full of fraudulent transactions such as what happened in 1MDB. Do you agree with me?

       Ismee: That explains why we failed.

       The lawyer then questioned Ismee whether the witness knew his former CEOs and CFO were "ordered" to work in silo.

       "Now we know," Ismee replied, adding that he did not know of the situation during the relevant time.

       The court had heard previous testimonies from Shahrol Azral, Mohd Hazem and Azmi that they were ordered by fugitive financier Low Taek Jho, or better known as Jho Low, to do their work in silo on a need-to-know basis.

       Ismee agreed to Muhammad Shafee's suggestion that by giving such an order, Low could direct people to do things without the others knowing.

       Muhammad Shafee then suggested to Ismee that working in silo was merely an excuse for the witnesses to avoid being queried on their own misdoings in the company, such as not checking before sending out a huge amount of money in the hundreds of millions out of the company.

       Muhammad Shafee: (Working) In silo became the defence of these witnesses.

       Ismee: In my personal view, you can't use that as an excuse.

       Najib, 69, faces 25 charges in total - four for abuse of power that allegedly brought him financial benefit to the tune of RM2.28bil; and 21 for money laundering involving the same amount of money.

       He faces imprisonment of up to 20 years and a fine of up to five times the sum or value of the gratification or RM10,000, whichever is higher, if found guilty.

       The hearing continues before Justice Collin Lawrence Sequerah on Tuesday (March 22).