No profits, only debts from 1MDB projects, court told

KUALA LUMPUR: The High Court was told that billions that were poured into investments by 1Malaysia Development Bhd (1MDB) failed to bring any profit to the country.

Instead, the nation suffered losses and debts from undertaking the projects that were meant to bring financial gains.

Senior officer Nur Aida Ariffin from the Malaysian Anti-Corruption Commission (MACC) testified this when rebutting a suggestion by defence counsel Wan Azwan Aiman Wan Fakhruddin at Datuk Seri Najib Razak’s RM2.28bil 1MDB trial here on Wednesday (May 29).

Wan Azwan had suggested that 1MDB profited from its investments in various sectors, such as the acquisition of an independent power producer (IPP).

Nur Aida, who is the investigating officer in the 1MDB probe, disagreed and said that the IPP was later sold to investors from China to pay off 1MDB’s existing debts.

Wan Azwan: You conclude that all the projects by 1MDB had failed. Do you agree with me that we now have the TRX building?

Nur Aida: Yes, I say that 1MDB suffers losses because TRX was not developed using 1MDB investment money as it was meant to be in the earlier joint venture agreements. 1MDB had to obtain foreign investments from other companies to develop TRX.

She said based on her investigation, it was found that the funds to develop TRX, or its original name Kuala Lumpur International Financial District (KLIFD), had been swindled, causing foreign investments to come in to continue the project.

In the proceedings today, the defence had completed its cross-examination of Nur Aida, who is considered the prosecution’s star witness.

Nur Aida took the stand for a cumulative 16 days.

Najib, 70, is on trial for 25 charges in total – four for abuse of power that allegedly brought him the financial benefit to the tune of RM2.28bil; and 21 for money laundering involving the same amount of money.

The hearing continues before Justice Collin Lawrence Sequerah on Thursday (May 30).