![\"pressure\"](\"https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2020\/09\/f993e1383a1fa4389c68db110b960d7a5f60bba11e152-1024x571.jpg\")
<\/figure><\/div>\n\n\n\nThe 10th prosecution witness in the case, however, said that KPMG still did not close the 2013 1MDB financial report as it was not satisfied with the documents and answers provided.<\/p>\n\n\n\n
\u201cBecause of pressure from Datuk Seri Najib to close the 1MDB account and the company\u2019s reputation, the management suggested to members of the board of directors (1MDB BOD) and shareholders to replace KPMG with Deloitte. <\/p>\n\n\n\n
\u201cThe decision was made because I faced pressure from various parties, mainly from Datuk Seri Najib who contacted me several times through my mobile phone to ensure the 2013 1MDB financial audit report was closed.<\/p>\n\n\n\n
\u201cI had no other suggestions apart from proposing to the BOD to replace KPMG with Deloitte,\u201d he said in his testimony at Najib\u2019s corruption trial involving RM2.3 billion in 1MDB funds.<\/p>\n\n\n\n
Mohd Hazem said that based on the Directors\u2019 Circular Resolution (DCR) dated Dec 31, 2013, among the reasons KPMG\u2019s services as the 1MDB auditor was terminated and replaced by Messrs Deloitte KassimChan was due to KPMG\u2019s failure to close the 1MDB financial audit report for 2013.<\/p>\n\n\n\n
He said that throughout his tenure as CEO, he knew of Deloitte closing the 1MDB account for the financial years of 2013, which was the year Deloitte replaced KPMG, and 2014.<\/p>\n\n\n\n
\u201cHowever, in 2014, Deloitte put pressure on the management to prove or explain again in detail the investments in Brazen Sky.<\/p>\n\n\n\n
\u201cI was under enormous pressure because the detailed investments in Brazen Sky could not be explained. Deloitte then decided that the 1MDB account would not be closed if 1MDB did not provide the detailed information. This means Deloitte decided that Brazen Sky\u2019s investments be liquidated and the money repatriated to Malaysia,\u201d he said. <\/p>\n\n\n\n
Mohd Hazem said he informed Jho Low about the matter and Jho Low himself made plans to liquidate Brazen Sky\u2019s investments, adding that by the end of 2014, only US$1.3 billion from the US$2.3 billion had been repatriated to Malaysia.<\/p>\n\n\n\n
Relating the meeting at Najib\u2019s residence on Dec 15, Mohd Hazem said also present were Jho Low and KPMG representative Datuk Johan Idris.<\/p>\n\n\n\n
He said that at the meeting, Najib, as the shareholder of 1MDB, told Johan that he knew about Brazen Sky\u2019s investments and he (Mohd Hazem) believed that Najib knew all about the status of the investment because he had been briefed by Jho Low and Yak Yew Chew of BSI Bank during a meeting on Nov 28, 2013.<\/p>\n\n\n\n
Mohd Hazem said that during the (Dec 15) meeting, KPMG had asked Najib whether he, as 1MDB shareholder, knew about Brazen Sky\u2019s investments and the former prime minister answered in the affirmative.<\/p>\n\n\n\n
\u201cOther than that, Datuk Seri Najib asked why KPMG kept raising doubts regarding the underlying asset investment when the BSI Bank itself had shown the investment statement.<\/p>\n\n\n\n
\u201cAfter all, the 1MDB was dealing with reputable parties. Datuk Seri Najib had also told Datuk Johan that he wanted to see KPMG close the 1MDB account before Dec 31, 2013, to which Datuk Johan did not answer him,\u201d he said.<\/p>\n\n\n\n
He said that in 2013, KPMG had pressured 1MDB numerous times to provide detailed documents regarding Brazen Sky\u2019s investments but Jho Low forbade it and did not give any documents to the 1MDB management to assist in KPMG\u2019s audit, other than the investment statement issued by the BSI Bank.<\/p>\n\n\n\n
He said KPMG was so disappointed that it sought a meeting with the shareholders, which is the Malaysian government represented by Najib, be held and the purpose of the meeting was for KPMG to impress upon the 1MDB management that everything was known to the shareholder, namely Najib.<\/p>\n\n\n\n
Najib, 67, is facing four charges of using his position to obtain gratification amounting to RM2.3 billion in 1MDB funds, and 21 counts of money laundering involving the same amount.<\/p>\n\n\n\n
The trial before Judge Collin Lawrence Sequerah continues.<\/p>\n\n\n\n
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