Resigning is ‘running away from the problem’, Najib tells court on 1MDB chairman Bakke quitting

Resigning is ‘running away from the problem’, Najib tells court on 1MDB chairman Bakke quitting



Convicted former prime minister Datuk Seri Najib Razak insisted he was in the dark about any trouble brewing in 1MDB and claimed its chairman Tan Sri Mohd Bakke Salleh did not tell him before the latter resigned in October 2009. — AFP file pic

Thursday, 23 Jan 2025 2:56 PM MYT


PUTRAJAYA, Jan 23 — Defendant Datuk Seri Najib Razak today denied that he already knew there was trouble brewing at 1Malaysia Development Berhad (1MDB) when the Finance Ministry-owned company’s chairman Tan Sri Mohd Bakke Salleh resigned in October 2009.

Instead, Najib described Bakke’s resignation as “running away from the problem”, claiming the latter did not tell him about the problems in 1MDB.

Testifying in his trial where 1MDB’s RM2 billion allegedly entered his personal bank accounts, the former prime minister said he disagreed knowing that there was trouble in 1MDB and adding that Bakke did not provide the reasons for his October 19, 2009 resignation.

Najib said Bakke also did not personally tell him later about his reasons for resigning, despite having a lot of opportunities to do so as they met regularly.

At that time, Bakke was Felda chairman and Najib was the minister in charge of the government agriculture agency.

“And as you know, this is the second time he resigned, because he resigned when he was in Terengganu Investment Authority (TIA) and he was reappointed, it’s also worth noting when he resigned, the other board members did not resign, it was Tan Sri Bakke alone,” Najib said.

He added that it was not an exodus of directors and only Bakke resigned from 1MDB’s board.

Lead defence lawyer Tan Sri Muhammad Shafee Abdullah then asked Najib what Bakke’s obligation would have been to the Finance Ministry (MOF) if he knew then that there was some trouble brewing in 1MDB.

Replying, Najib said Bakke could have brought up the problem to the 1MDB board before he resigned, among a number of things.

“If the problem lies with the management, then the board can even make the decision to terminate the services of the management, including the CEO itself. That’s number one.

“Number two, he could have reported it to MOF. But you know, as a board, I think his first instinct would be to confront the issue, and if you are not happy with the management, then you take a stand. You must take a stand, because that’s your job, fiduciary duty as a member of the board is not to run away, resign,” he said.

Najib added that the right action to take is to insist on proper investigation on the management or the CEO if they are the source of the problem, and to then report the investigation findings to the board for a decision to be made, and to also present the report to the Finance Ministry.

“The decision must be taken first line by the board, because the board is the main organ of the company.

“If you run a company and you know the management has been doing something criminal or have been up to shenanigans, basically something illegal or criminal, then it is incumbent upon you to confront the management and insist on investigation and take action.

“I mean, resignation is running away from the problem. You have to take action. And I believe in other corporations or companies, this was the case,” he said.

Najib said he was not aware whether Bakke had lodged a report or not regarding 1MDB.



Former 1MDB CEO Bakke told the High Court that he had tried to alert Najib about mismanagement and financial misconduct in the sovereign investment company in an SMS, which the former PM insisted he never received. — File picture by Hari Anggara



Naijb said the 1MDB board of directors did not refer allegations of misconduct in the company to the board of advisers. As the prime minister, Najib was chairman of 1MDB’s board of advisers.

Asked what if Bakke’s resignation letter had listed the problems in 1MDB, Najib said he would certainly have ensured that action was taken, and that he would refer it immediately to the board for a meeting to be held to discuss the issues.

“And if it borders on criminality, then the board must report it because there’s a crime, but nothing of that sort happened,” he said.

Previously, Bakke told the High Court that he had tried to alert Najib about mismanagement and financial misconduct in 1MDB by sending a text message (SMS) to Najib.

Bakke told the court he resigned from 1MDB as Najib did not reply to the SMS, and that this caused him to feel that the latter was involved in the 1MDB misconduct.

Bakke also claimed he felt something wrong was happening without his knowledge.

But Najib last week said he did not remember getting the SMS and had expected Bakke to see him even after he was asked by the prosecution.

Yesterday, Najib told the court that Bakke should not have sent an SMS on such a serious matter regarding alleged wrongdoings in 1MDB.

“Because I didn’t receive the SMS, but such a matter cannot be treated on an SMS basis. You don’t send a SMS to a sitting prime minister on such a serious matter,” he said yesterday.

Najib’s 1MDB trial before judge Datuk Collin Lawrence Sequerah resumes this afternoon.