KUALA LUMPUR (April 24): The Malaysian Anti-Corruption Commission investigating officer (MACC IO) probing Datuk Seri Najib Razak in relation to the 1Malaysia Development Bhd (1MDB) debacle never asked the former prime minister if he had instructed for the controversial transfer of US$700 million to a company linked to fugitive Low Taek Jho (Jho Low), the court heard on Wednesday.
Nur Aida Arifin, the prosecution's 49th witness in the ongoing 1MDB-Tanore trial, said that she had asked former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, and that was sufficient information.
The IO was responding to defence counsel Wan Azwan Aiman's questions during cross-examination.
Wan Azwan: Did you ask Najib if [the instruction] to transfer 70% of the sum came from him?
Nur Aida: I asked Shahrol.
Wan Azwan: Did you ask Najib?
Nur Aida: No.
Wan Azwan: Don't you think you should have asked Najib as it is important?
Nur Aida: No.
The controversial transfer is related to 1MDB’s joint venture (JV) with Saudi Arabia-based PetroSaudi International Ltd (PSI), under which 1MDB undertook an equity investment of US$1 billion, while PSI injected US$1.5 billion worth of assets into the JV. However, after the JV agreement was signed, PSI said its US$1.5 billion asset injection into the JV entailed a US$700 million advance for 1MDB, which meant 1MDB owed PSI.
However, the so-called JV agreement was not entered into with PSI, but with a company called PetroSaudi Holdings (Cayman) Ltd.
Through Shahrol's instructions, 1MDB had diverted US$700 million from the US$1 billion JV equity investment into an account belonging to Good Star Ltd, on the grounds that Good Star was PSI’s affiliate. In truth, Good Star was linked to Jho Low.
Defence: Purported phone call that 'pressured' board to join JV did not take place
Previously, the prosecution's 15th witness, former 1MDB chairman Tan Sri Mohd Bakke Salleh, testified that the time constraints to approve the JV, coupled with the management’s blatant disregard of the board’s advice, and the split remittance had prompted his resignation on Oct 19, 2009, only a few weeks after his reappointment on Aug 11. The resignation of the well respected member of Malaysia's business circle prompted talk that something was amiss within 1MDB.
The late Tan Sri Azlan Mohd Zainol also resigned in protest against the remittance of the funds, leaving about three months later on Jan 11, 2010.
While on the stand in mid-2022, Bakke also revealed that just before a board meeting on Sept 26, 2009, Jho Low, who was not part of 1MDB, had taken a phone call from Najib before the meeting and passed the phone to him.
Bakke testified that Najib asked him to forget all the past 1MDB transactions related to the Islamic medium-term note issuance, and to 'firm up' the JV with PSI.
This phone call, Bakke testified, pushed the board to lock in the JV deal.
However, on Wednesday, Wan Azwan said his client had indicated to the defence that the phone call never took place. Nur Aida, the MACC IO, disagreed.
Wan Azwan: That phone call never took place.
Nur Aida: I disagree.
Wan Azwan: Even if the call happened, Najib never instructed Bakke to pass the resolution to enter the JV.
Nur Aida: I don't know [about that].
Wan Azwan: In your investigation, [did you ask] Bakke?
Nur Aida: No.
Wan Azwan: In that purported phone call, Najib never instructed the BOD (board of directors) to make the US$700 million [transfer] to Good Star.
Nur Aida: Yes.
'Najib never instructed Shahrol or Casey to transfer funds to PSI Holdings Cayman'
Earlier, Nur Aida also testified that Najib didn't instruct Shahrol or former 1MDB executive director of business development Casey Tang Keng Chee to transfer the US$700 million to PSI Holdings Cayman or Good Star.
Wan Azwan: Najib never instructed Shahrol or Casey to hide from the board the fact that 1MDB had to transfer US$700 million to PSI Holdings Cayman.
Nur Aida: [That's] correct.
Wan Azwan: Najib never instructed Shahrol or Casey to transfer the funds to Good Star.
Nur Aida: Correct.
The counsel also went into Jho Low's ties with celebrities and Middle Eastern royalties. Nur Aida responded that she did not investigate Jho Low, hence she doesn't know about his connections.
Wan Azwan further said that his client had instructed the defence to point out that the late King Abdullah and the Saudi government in general were known for their "generosity" and "philanthropic nature". He went on to cite newspaper articles detailing large donations made to other Islamic countries like Egypt, Pakistan and Palestine. The IO said she was not aware of this.
Najib has maintained that the monies in his accounts were donations from Saudi Arabia.
In this trial, Najib faces four counts of abuse of power for using his position as the then prime minister, finance minister, and chairman of 1MDB’s board of advisers to receive gratifications worth US$620 million (RM2.27 billion). He also faces 21 money-laundering charges.
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