KUALA LUMPUR (Aug 22): The "driving force" behind the federal government taking over Terengganu Investment Authority (TIA) by converting it into 1Malaysia Development Bhd (1MDB) was TIA’s then chief executive officer Datuk Shahrol Azral Ibrahim Halmi, and not then prime minister Datuk Seri Najib Razak, the High Court heard on Thursday.
The defence in the ongoing 1MDB-Tanore trial contended that not only did Shahrol moot the idea of the federalisation of 1MDB's predecessor, TIA, to Najib, but he also persistently followed up on the idea with several suggestions to Najib.
"[We want to show] the reason for federalisation was [not] Najib's greed, [but he] was given a baby to adopt," said lead defence counsel Tan Sri Muhammad Shafee Abdullah on Thursday.
The senior lawyer went on to argue that the prosecution had to show that Najib engineered the TIA takeover to become a vehicle for fraud. However, the defence contended that the federalisation was the beginning of the "criminal scheme" by fugitive businessman Low Taek Jho (Jho Low) through Shahrol, his "lackey".
This is a pertinent argument, as the defence is trying to establish that Najib had no vested personal interest in the federalisation of the investment fund, and hence did not abuse his position or power.
On Day Four of submissions at the end of the prosecution's case, Shafee and fellow counsel Wan Azwan Aiman tried to impress upon the court that Najib was not enthusiastic about the takeover, nor did he actively push for the federalisation of the fund.
The defence walked through the series of events that transpired between May and July 2009, in which TIA eventually became 1MDB under the federal government, arguing that Shahrol sent repeated correspondences to Najib, pushing for several proposals for the takeover.
The proposals included that Minister of Finance Incorporated (MOF Inc) should purchase all of TIA's ordinary shares issued to Menteri Besar of Terengganu Incorporated (MB Terengganu Inc); that the takeover does not need Parliament’s permission; proposing a three-tier check-and-balance with the prime minister chairing the board of advisors (BOA); and suggesting names for the board of directors.
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 BOA to receive gratifications worth US$620 million (RM2.27 billion). He also faces 21 money-laundering charges.
The trial before judge Datuk Collin Lawrence Sequerah continues.