I am being made a scapegoat, ex-1MDB CEO tells court

Former 1MDB chief executive director Shahrol Azral Ibrahim Halmi told the Kuala Lumpur High Court he is being turned into a scapegoat with regards to the multi-billion ringgit scandal involving the state fund.

He said this during cross-examination by lead defence lawyer Muhammad Shafee Abdullah at former premier Najib Abdul Razak's RM2.28 billion 1MDB graft trial.

Shafee had highlighted the Public Accounts Committee's (PAC) report on 1MDB in 2016 where it proposed action to be taken against Shahrol.

The lawyer read out excerpts of the report to Shahrol as follows:

"Specifically, PAC believes that the former CEO of 1MDB Shahrol needs to take responsibility for those weaknesses and blunders.

"Therefore, the law enforcement agencies are required to carry out further investigation on Shahrol Azral and others involved from the management of 1MDB."

Acknowledging the reference to him in the report, Shahrol replied: "They are painting me to be a scapegoat."

Shafee also put to Shahrol he had been reluctant to cooperate with the PAC as it would expose that he was in a conspiracy with businessperson Jho Low. The former CEO denied the claim.

During cross-examination, Shafee also zoomed in on Ong Kim Huat's role as an independent director on 1MDB's board.

Shafee pointed to reports that Ong was a long-time business partner of Jho Low's father Larry Low Hock Peng and questioned why this did not raise a red flag with Shahrol.

"I did not do further background checks as Datuk Seri (Najib) wanted him on the board," the witness responded.

When Shafee said Najib could not be expected to have the background details before Ong was appointed as 1MDB director, Shahrol replied that Najib was then empowered by 1MDB's Articles of Association to make the appointment.

"That did not happen (the background check) because the articles say he is appointed by the PM (Najib) and that is it, we did not do due diligence or check the background," he added.

Shahrol said he was not aware of Ong's business relationship with the Lows or whether Najib knew about it when the former premier agreed to the appointment.

Shafee had suggested that Jho Low planted his allies in 1MDB to control the company.

Najib is facing 25 charges of money laundering and abuse of power over a sum of RM2.28 billion originating from 1MDB.

The case is being presided over by High Court judge Collins Lawrence Sequerah. - Mkini