KUALA LUMPUR (Oct 18): Former 1Malaysia Development Bhd (1MDB) chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi told the High Court on Friday that he was not comfortable in calling or labelling fugitive businessman Low Taek Jho (Jho Low) “as a crook”.

Being cross-examined by movie producer Riza Aziz’s lead counsel Tan Sri Muhammad Shafee Abdullah, Shahrol, who is the first witness in 1MDB’s US$248 million suit against Riza and his production company Red Granite Pictures Inc, the former CEO said he lived his life by not judging people, and said at the time, he did not know everything that went on (behind the scenes).

“Najib [Datuk Seri Najib Razak, who is Riza’s stepfather] has been kind to me after I left 1MDB. I see his personal demeanour,” Shahrol said of the jailed former prime minister who is serving six years’ imprisonment (and fined RM50 million) after he was convicted in a criminal case against 1MDB’s former subsidiary SRC International Sdn Bhd.

After leaving 1MDB, Najib had put Shahrol in the Performance and Management Delivery Unit (Pemandu), a unit under the Prime Minister’s Department.

On Jho Low, Shafee had asked Shahrol to possibly name or describe individuals who are considered crooks of the highest order.

Shafee: I think Jho Low heads the list?

Shahrol: I am not in position to say so.

Shafee: Jho Low is alleged to have committed fraud on 1MDB.

Shahrol: At that time, I did not know everything that went on, as I did not know all the facts. I live my life not judging people. (Then he went on in relating about Najib)

Shafee: But Jho Low is described as a crook of the highest order from some media reports.

Shahrol: I am not comfortable in calling him (Jho Low) a crook. 

However, the witness agreed with the senior counsel that Jho Low could be considered a manipulator.

“He [Jho Low] can be described as a manipulator, as he may manipulate events to make things happen,” Shahrol said.

Shahrol also agreed that US$700 million of 1MDB funds had gone to Good Star Ltd, in what was supposed to be the PetroSaudi International joint-venture, in which Good Star was controlled by Jho Low.

The witness, when asked by Shafee, denied that he was protecting Jho Low.

“I am just uncomfortable to blame [him],” Shahrol said, adding that he was now aware that billions had gone into Jho Low’s accounts.

The witness told the court that Jho Low had stopped contacting him after he left 1MDB and was placed in Pemandu in 2013.      

Shafee: Do you know that Jho Low is pursued by the US and Malaysian authorities?

Shahrol: I do not have first-hand knowledge, but I do read reports from the media.

Shafee: You are aware that Jho Low is at large and refusing to come back (to Malaysia), and has absconded from this country?

Shahrol: Yes. 

Riza is Najib’s stepson through his wife Datin Seri Rosmah Mansor. Riza, and his companies Red Granite Pictures and Red Granite Capital Ltd, are being sued for US$248 million by 1MDB and its subsidiaries, 1MDB Energy Holdings Limited, 1MDB Energy (Langat) Limited and 1MDB Energy Ltd.

Red Granite Pictures had produced the Oscar-winning movie The Wolf of Wall Street, which was directed by Martin Scorsese, as well as other lesser known films like Dumb and Dumber To, allegedly using 1MDB funds.

It is 1MDB’s case that part of 1MDB’s money (US$10.173 million) for the PetroSaudi International venture had gone to Riza’s Red Granite Capital and Red Granite Pictures.

A second tranche of payment amounting to US$238 million went to Red Granite Capital from the 2012 bond deals by 1MDB involving the acquisition of energy related companies here. The transfer took place in three transactions from June 18, 2012, to Nov 14, 2012.

In 1MDB’s opening statement that was filed in court on Wednesday, it was revealed that Riza and the two companies used the funds to purchase real estate, purchase movie memorabilia; and also pay for gambling expenses. 

It is to be noted that the movie The Wolf of Wall Street was produced in 2013.

Shafee in his cross-examination also named several people, including former 1MDB personnel such as general counsel Jasmine Loo Ai Swan, former chief financial officers (CFO) Terence Geh Choh Heng and Azmi Tahir, former Goldman Sachs bankers Tim Leissener and Roger Ng, several BSI bankers convicted in Singapore, and Shahrol’s successor, Mohd Hazem Abdul Rahman, had all taken instructions from Jho Low, to which Shahrol said he was not aware (of this).

Shahrol added if he had been aware that Loo had taken instructions from Jho Low, he would have been more careful.

When asked by Shafee whether Shahrol knew that those initially appointed to the 1MDB board, including Shahrol himself, were appointed on the basis of their qualifications, Shahrol said he did not know, as he was not the appointing person.

Shafee said that former 1MDB chairman Tan Sri Bakke Salleh has a qualification in finance and accounting and is known as no pushover; Tan Sri Ismee Ismail (chartered accountant), Tan Sri Ong Gim Huat (property developer), Ashvin Valiram (of the Valiram group) and Shahrol himself.

Shafee: You [Shahrol] yourself are academically qualified?

Shahrol: We went to the same high school, Tan Sri (alluding to the fact that he and Shafee had studied at the Royal Military College — RMC). I did my tertiary education at Stanford University in electrical engineering, and when I returned, I was with Accenture, that specialises in information technology and management consulting.

The witness agreed that his background was utilised in running 1MDB, and its predecessor Terengganu Investment Authority (TIA).

The hearing continues before Judicial Commissioner Raja Datuk Ahmad Mohzanuddin Shah Raja Mohzan on Thursday (Oct 24).

Read also:
Riza Aziz spent 1MDB funds on gambling, real estate, memorabilia, and making movies, court told