KUALA LUMPUR: The High Court was told that Datuk Seri Najib Razak did not reply to a text message which informed him of funds amounting to US$700mil (RM2.95bil) that was diverted from a joint venture (JV) between 1Malaysia Development Bhd (1MDB) and PetroSaudi International Ltd (PSI) to Good Star Ltd, a company linked to fugitive businessman Low Taek Jho.

       Former 1MDB chairman Tan Sri Mohd Bakke Salleh, 67, said he had sent the former prime minister an SMS from his BlackBerry but he “never got a reply”.

       “This is not a normal response or a normal reaction. In the past, whatever message I sent to him (Najib), I would receive (a response),” Mohd Bakke said here on Wednesday (Dec 22).

       The witness was asked about the split in funds of US$1bil (RM4.21bil) meant for a joint bank account for the JV in an examination-in-chief by lead prosecutor Datuk Seri Gopal Sri Ram in the 1MDB audit tampering trial involving Najib and former 1MDB CEO Arul Kanda Kandasamy.

       The JV company, known as 1MDB-PetroSaudi Ltd, involved 1MDB undertaking an equity investment of US$1bil whereas PSI would inject US$1.5bil (RM6.32bil) worth of assets.

       However, the US$1.5bil asset injection by PSI into the JV company needed 1MDB to pay US$700mil in advance for PSI.

       This resulted in 1MDB diverting US$700mil from the US$1bil JV equity investment into an account belonging to Good Star, said to be linked to Low, or better known as Jho Low, without the approval of 1MDB’s board members.

       Sri Ram: To your knowledge, did Najib know about this diversion of funds?

       Mohd Bakke: At the time, we were not in the position to know that conclusion.

       The witness, however, said that Najib was informed about the funds’ diversion in a board meeting on Sept 26, 2009.

       “After the events, yes, he was informed about it. I mean, I informed him on the day of the board meeting,” he added.

       To a question, Mohd Bakke said he was interviewed by the auditor-general in June 2015 where he spoke about the chronology of events following his first appointment as director in Terengganu Investment Authority (TIA, which later became 1MDB), his first resignation, his appointment in 1MDB and his subsequent resignation from 1MDB.

       Mohd Bakke said he resigned from 1MDB on Oct 19, 2009, as he was unhappy with how the management of 1MDB had run the company.

       “Straightaway I look at the management with suspicion. I wasn’t happy. I was angry. I even told my fellow board members that we should all resign,” he added.

       Najib, 68, is accused of abusing his position to order amendments to the 1MDB final audit report to avoid any action being taken against him while Arul Kanda, 45, is accused of abetting Najib in making the amendments to the report.

       Both men were charged under Section 23(1) of the Malaysian Anti-Corruption Commission (MACC) Act 2009, which provides a jail term of up to 20 years and a fine of no less than five times the amount of gratification or RM10,000, whichever is higher, upon conviction.

       The hearing resumes before Justice Mohamed Zaini Mazlan on March 7, next year.