Ex-1MDB director: Najib didn’t intimidate KPMG into signing 1MDB audit, just made ‘polite request’

Ex-1MDB director: Najib didn’t intimidate KPMG into signing 1MDB audit, just made ‘polite request’



Former 1MDB director Tan Sri Che Lodin Wok Kamaruddin instead described Najib’s remarks to KPMG managing partner Datuk Johan Idris as just a 'polite request' to the then 1MDB auditor. — Picture by Mukhriz Hazim

Tuesday, 25 Feb 2025 6:05 PM MYT


PUTRAJAYA, Feb 25 — Former prime minister Datuk Seri Najib Razak was not intimidating auditor KPMG into signing off its audit report on 1Malaysia Development Berhad’s (1MDB) 2013 financial statements, a witness told the High Court today.

Former 1MDB director Tan Sri Che Lodin Wok Kamaruddin instead described Najib’s December 15, 2013 remarks to KPMG managing partner Datuk Johan Idris as just a “polite request” to the then 1MDB auditor.

“Yang Arif, I viewed it as a polite request by Datuk Seri Najib rather than intimidation, and this is well reflected in the minute by Johan,” Lodin said as the 12th defence witness for Najib in the latter’s 1MDB trial.

Najib’s defence lawyer Wan Azwan Aiman Wan Fakhruddin had asked Lodin about Johan’s claim of intimidation by Najib when the then finance minister said he would “like to see the accounts signed by December 31, 2013”.

Back in December 2013, KPMG had not signed the audit for 1MDB’s financial year ending March 31, 2013, as it had still yet to receive information — which it had asked for since April 2013 — from 1MDB.

Previously, Johan had testified as the 14th prosecution witness in the 1MDB trial, and had said that Najib had in a December 15, 2013 meeting exerted pressure and intimidated KPMG to conclude and sign the audited financial statements by December 31, 2013.

After that meeting between Najib, KPMG and 1MDB officials at Najib’s private residence, Johan had recorded what had happened in the meeting in the form of notes or minutes in an email.

Lodin, who was at the same meeting involving KPMG, said Johan’s notes or minutes were an “accurate record” of what happened at the meeting.

“I confirm that I commented that KPMG should be fair and not to request for something the company was not able to provide,” he said.

Citing Johan’s minutes, Lodin also confirmed that Najib did say he would like to see 1MDB accounts’ audit signed by December 31, 2013 and that the then prime minister did suggest KPMG to fly to Hong Kong to get the necessary information from the company purportedly handling 1MDB’s alleged US$2.3 billion investments to complete the 1MDB audit.

In the end, KPMG did not sign off on 1MDB’s 2013 financial statement as 1MDB still did not provide the required information on 1MDB’s purported overseas investments allegedly worth US$2.3 billion. This is now known to be a sham investment.

Among other things, Lodin today confirmed the 1MDB board had on December 31, 2013 made a decision to remove KPMG as 1MDB’s auditor upon “mutual agreement” with KPMG, and that the 1MDB board also decided on that day to appoint Deloitte Kassim Chan as the new auditor.

Lodin today finished reading his 211-page witness statement in the 1MDB trial.

Previously, Najib had as his own defence witness testified in the 1MDB trial that he did not give a “timeframe” of just 16 days for KPMG to sign the 2013 audit and denied his remark of hoping to see it signed by December 31 was an “instruction”, and said he could not have instructed KPMG as it was an independent and professional audit firm.

Najib also said he had “never intimidated” Johan.

Najib previously testified that he does not have a reputation of intimidating people.

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