Tan Sri Muhammad Shafee Abdullah questioned the basis of the government’s RM24 billion civil suit against Datuk Seri Najib Razak after revealing that more than RM31 billion linked to 1MDB had already been recovered by authorities.
KUALA LUMPUR, 04 Aug – The government’s decision to pursue a RM24 billion civil claim against Datuk Seri Najib Razak has come under renewed scrutiny after the defence revealed that authorities have already recovered more than RM31 billion linked to 1Malaysia Development Berhad (1MDB).
Najib’s lead counsel, Tan Sri Muhammad Shafee Abdullah, disclosed the figure at a press conference after court proceedings on Tuesday, following the conclusion of testimony by the plaintiff’s witness, former UK investigator Richard Templeman.
Shafee said the recovery figure was disclosed during the discovery process in the civil proceedings, questioning why it had not been made public despite exceeding the amount being claimed against Najib.
According to him, the RM31 billion recovered did not include the value of remaining 1MDB assets such as Bandar Malaysia and Edra, which could further increase the total recoverable value.
“The plaintiff is claiming RM24 billion, yet documents disclosed during discovery show recoveries have already exceeded RM31 billion,” Shafee said, adding that the Treasury should explain why these figures had not been publicly disclosed.
He argued that once the recovered funds and remaining assets were taken into account, questions naturally arose over the basis and quantum of the government’s civil claim.
Templeman’s Testimony Concludes
Templeman, a former investigator engaged by UK-based law firm Kobre & Kim in relation to international asset recovery efforts involving 1MDB, completed his testimony after two days of cross-examination.
The trial will resume on Wednesday with former DAP national publicity secretary Tony Pua expected to take the witness stand as the plaintiff’s next witness.
Defence Challenges ‘Top-Down’ Narrative
Reflecting on Templeman’s evidence, Shafee said the defence had successfully challenged the government’s assertion that Najib exercised complete control over 1MDB through a so-called “top-down approach”.
He said Templeman eventually accepted that the documents shown in court reflected the normal governance structure of a company, where decisions were made by the board of directors before being referred to the shareholder for approval where required.
According to Shafee, this was consistent with the governance framework of a government-linked company and did not, by itself, demonstrate that Najib directed the company’s day-to-day affairs.
The defence also referred Templeman to Article 117 of 1MDB’s Memorandum and Articles of Association, a provision frequently cited throughout the proceedings.
Shafee said Templeman acknowledged that, based on the documents he had reviewed, he had not seen any instance where Najib exercised powers under Article 117 to override the board’s decisions.
No Documents Showing Najib Directed The 1MDB Board
Shafee further highlighted that Templeman agreed there were no documents showing Najib had directed the 1MDB board on its decisions.
He also noted that Templeman was unaware that a handwriting expert had previously testified that the signatures and handwritten notes purportedly belonging to Najib on certain 1MDB board meeting minutes were not his.
The defence further pointed out that the board meeting minutes themselves contained no record of any other attendees or participants, giving the impression that Najib was effectively “having a monologue with himself” rather than recording discussions involving other board members.
On the issue of fugitive businessman Low Taek Jho, or Jho Low, Templeman disagreed that Jho Low acted as a shadow director controlling 1MDB from outside the company. However, he accepted that there were some instances suggesting Jho Low’s involvement in the company’s affairs.
With Templeman’s evidence concluded, the trial is expected to enter a new phase with Tony Pua’s testimony when proceedings resume on Wednesday. – NMH
Datin Hasnah is the co-founder and CEO of New Malaysia Herald based in Kuala Lumpur, Malaysia.
With an extensive background in mass communication and journalism, she works on building up New Malaysia Herald and it’s partner sites. A tireless and passionate evangalist, she champions autism studies and support groups.
Datin Hasnah is also the Editor in Chief of New Malaysia Herald.
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