'Jho Low-linked firms made RM74m out of thin air at EPF, Socso's expense'

NAJIB TRIAL | The Kuala Lumpur High Court today heard how businessperson Low Taek Jho made around RM74 million "out of thin air" by flipping 1MDB bonds.

The ninth witness at former prime minister Najib Abdul Razak's 1MDB graft trial, former 1MDB chief executive officer Shahrol Azral Ibrahim Halmi, was questioned if he knew about Aktis Capital Singapore Pte Ltd and Country Group Securities Pcl, firms believed to be linked to Jho Low.

Lead defence counsel Muhammad Shafee Abdullah, who was cross-examining Shahrol, revealed that Aktis Capital and Country Group had entered into an agreement with Ambank to purchase 1MDB's Islamic medium-term note (IMTN) at a 12 percent discount in 2009.

Zooming in on Aktis Capital, Shafee said the firm subsequently had the bonds resold at par value to EPF and Socso as well as major insurance firms, netting around RM74 million in a matter of weeks from the flip.

"The Malay saying is atas angin (out of thin air) of RM82 million-odd trading gain and various fees," said Shafee.

The final gain was RM74 million after various deductions.

However, Shahrol said as CEO, he was never made aware of Aktis Capital's role and suggested that Ambank may have concealed this.

Shafee: Are you now going on record that you were never informed by Ambank that Aktis Capital and Country Group were involved as secondary subscribers?

Shahrol: Yes.

Shafee: Is it that Ambank group was purposely hiding this fact?

Shahrol: Yes, because they did not present to us.

Shafee: Why do you think they were hiding? They are just a bank.

Shahrol: I don't want to speculate on that.

Shahrol Azral Ibrahim Halmi

Shafee later suggested that dealing with Aktis Capital and its concealment was not done by Ambank officially but by "someone" in the bank to which Shahrol agreed.

Shahrol also conceded that 1MDB was among the losers as the result of the flip deal with Aktis Capital.

1MDB, then known as the Terengganu Investment Authority (TIA), received 12 percent less in proceeds from the RM5 billion in bonds it issued due to a 12 percent discount.

Shafee then added: "Malaysians got screwed twice. The final purchaser is a Malaysian entity (EPF), Malaysian insurance companies, Socso, they bought at face value".

Najib is facing 25 charges of money laundering and abuse of power over the alleged misappropriation of RM2.28 billion from 1MDB.

Jho Low, who is purported to be one of Najib's co-conspirators, is still on the run.

The trial is before Kuala Lumpur High Court Judge Collin Lawrence Sequerah. - mkini