PUTRAJAYA (March 27): A retired police officer who was previously the investigating officer of the 1Malaysia Development Bhd (1MDB) case, agreed with a question put to him in court on Thursday that former prime minister Datuk Seri Najib Razak was involved with the investment fund from as early as May 2009.

R Rajagopal said Najib was already involved with the fund when he instructed then Terengganu Investment Authority (TIA) directors Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail to proceed with TIA's RM5 billion Islamic Medium Term Notes (IMTN) issuance, despite Sultan Mizan Zainal Abidin of Terengganu's order to halt the bond issue.

TIA was the predecessor to 1MDB, before it was federalised. Shahrol and Ismee, both prosecution witnesses in the trial, had previously testified that they had been summoned to the palace in May 2009 and directed by Sultan Mizan, who was also the then Yang di-Pertuan Agong (YDPA), to suspend the IMTN issuance. Ismee testified that Shahrol had informed him that the issuance could not be stopped because "they had pushed the button on the issue."

Rajagopal, the 11th defence witness in the 1MDB-Tanore trial, in which Najib is facing multiple power abuse and money-laundering charges, told the court that Shahrol had contacted fugitive Low Taek Jho (Jho Low) after the palace meeting, citing their statements that were recorded by the police during their investigation into the fund's dealings.

Jho Low then instructed Shahrol and Ismee to speak to Najib, as the government had guaranteed the IMTN, Rajagopal said.

"That night itself, they had a meeting at Najib's home, where he was informed of the Sultan's wish. Najib then told them to proceed with the IMTN and that he would speak to the Sultan," Rajagopal recalled. This version was consistent with Ismee's testimony.

Deputy public prosecutor Ahmad Akram Gharib then asked, "You agree with me that even since May 2009, there was Najib's involvement?"

Rajagopal replied, "Agree".

Testifying in his own defence last December, Najib said Shahrol had informed him that the notes had been fully subscribed during his 2009 meeting with both Shahrol and Ismee. He also said he had spoken to the Sultan and told him that the bond issuance should not be stopped, as it would negatively impact the Malaysian bond market and investor confidence.

The former prime minister also testified that he was not in favour of federalising TIA, but said TIA had already agreed to be federalised in July 2009 through discussions involving the Sultan, TIA, Finance Ministry officials and Menteri Besar Terengganu Incorporated (MBTI), which owned TIA.

Only RM4.385 billion in proceeds were eventually raised by 1MDB from the 2009 RM5 billion debt papers, which were issued or sold at RM87.92 or a 12.08% discount to its RM100 nominal value to Aktis in Singapore and Country Group in Thailand, which were linked to Jho Low.

The bonds were then resold within days to EPF and insurance providers like Prudential for approximately RM100-105, with Jho Low allegedly profiting from the flip.

The bond issuance is central to the first abuse of power charge Najib faces, as RM60.63 million, which is at the core of this charge, was traceable to the IMTN bond issuance and its syndicated term loan in 2010. The prosecution argues that Najib had vested interest in this from the beginning, while the defence contends that 1MDB was not Najib's idea nor his "baby", as Najib had repeatedly said.

Earlier, Rajagopal, who served in the police force for 41 years, testified that he took charge of the investigations into 1MDB in September 2015. Investigations into the fund only intensified after April 2016, he said, following the tabling of Parliament's Public Accounts Committee (PAC) report on the 1MDB scandal.

He also testified that there were no suspects identified when he first took over, and that Najib became a suspect only around 2019.

"No (suspects at first), because it was too early. We just got all the documents, and witness statements had not been recorded. So, we had insufficient information to identify who committed what crime," Rajagopal said to a question from Akram about there being no suspects in 2015.

He added that the standard procedure was to investigate if any wrongdoing had occurred, then identify the perpetrators, and subsequently tracing recipients of the impugned funds.

Rajagopal also confirmed that investigations picked up further when Datuk Seri Khairuddin Abu Hassan and others lodged police reports about the scandal, which dominated news reports. He added that initial investigations were under Section 409 of the Penal Code regarding criminal breach of trust by a public servant or agent, and centred around the management of 1MDB.

But Najib's name repeatedly surfaced during interviews with management and board members, Rajagopal said.

Najib was eventually charged with four abuse of power charges under Section 23 of the Malaysian Anti-Corruption Commission Act for using his power for gratification.

Rajagopal also confirmed attending a multi-agency joint task force meeting on 1MDB in July 2015 at the home of former attorney general Tan Sri Abdul Gani Patail, who led the task force.

During the meeting, Rajagopal confirmed that Tan Sri Abu Kassim, then head of the MACC, had suggested charging Najib, a point Rajagopal had also testified to during Najib's SRC International trial.

But Najib, who was still prime minister at the time, was not charged. Instead, the multi-agency task force, which included the police, MACC, Bank Negara Malaysia (BNM) and the Attorney General's Chamber (AGC), was disbanded in July 2015, following Abdul Gani's abrupt removal as attorney general.

Rajagopal also confirmed that he was the officer referred to by Tan Sri Dzulkifli Ahmad, then National Revenue Recovery Enforcement Team at the AGC, in his clandestine conversations with Najib. He had also testified to this during the SRC trial.

Dzulkifli's conversations with Najib have been tendered as evidence in the trial. In one conversation, Dzulkifli was recorded warning Najib about developments in the 1MDB investigations that implicated him.

Besides the four abuse of power charges, Najib is facing 21 money-laundering charges in this 1MDB-Tanore trial. The proceedings will continue on April 7, with the continued cross-examination of Rajagopal.

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Ex-MACC chief Abu Kassim suggested charging Najib with 1MDB, SRC-related crimes in 2015