PETALING JAYA: A retired officer from the Finance Ministry testified that the government was weak due to the country’s poor international debt rating during Datuk Seri Najib Abdul Razak’s time as prime minister in 2013, Malaysiakini reports.
Datuk Siti Zauyah Md Desa said this during today’s RM2.28 billion 1MDB corruption trial against Najib, who is also a former finance minister.
The 26th prosecution witness was replying to questions during cross-examination by Najib’s lawyer Wan Aizuddin Wan Mohammed.
The lawyer was grilling her over her past testimony regarding the letter of support (LOS) allegedly signed by Najib for 1MDB to obtain a loan of US$3 billion linked to the Malaysian sovereign wealth fund’s joint venture with Aabar Investments PJS.
An LOS is an indirect guarantee, where the parent company would have to settle the debt obligation if the company fails to repay the loan. And if the holding company fails to do so, the Government would be held accountable for the loan.
Upon cross-examination by Najib’s lawyer Wan Aizuddin Wan Mohammed who asked her about the LOS, Siti Zauyah said that it was part of her division’s duty to take care of the country’s image, and her responsibility included looking out for the financial implications for the country, The Edge Markets reports.