Najib's defence: 1MDB must be run by a bunch of idiots

1MDB TRIAL | The defence team in former prime minister Najib Abdul Razak's RM2.28 billion 1MDB graft trial today chastised a former official of the company for being allegedly duped on more than one occasion.

Lead defence counsel Muhammad Shafee Abdullah was cross-examining former 1MDB chief executive officer Shahrol Azral Ibrahim Halmi (above) about 1MDB's failure to detect that the British Virgin Islands-registered Aabar Investments PJS Ltd was unrelated to Abu Dhabi-based Aabar Investments PJS.

"1MDB must be run by a bunch of idiots to fall in cobra pits," Shafee said.

Shahrol replied: "I reserve my comment".

Earlier, Shahrol said he had believed Aabar BVI to be a subsidiary of Aabar Investments PJS as they had common office-bearers, namely Khadem al-Qubaisi and Mohamed Badawy al-Hussainy. Both men have faced criminal action in the United Arab Emirates.

Shafee, in his cross-examination, referred The Aabar BVI as "little Aabar" and the legitimate Abu Dhabi-based Aabar as "big Aabar".

Shahrol said he did not verify whether "little Aabar" or "big Aabar" were related and was unsure if other officials in 1MDB did so.

Asked if he was "thunderstruck" when the International Petroleum Investment Company (IPIC) in 2016 denied links to Aabar BVI, Shahrol said he was already becoming numb at that stage by the revelations about 1MDB. 

Before the revelation, 1MDB had paid billions of dollars to Aabar BVI from the proceeds of bonds arranged by Goldman Sachs in 2012, which was subsequently misappropriated.

"I was surprised but I was not thunderstruck," Shahrol said.

"Because after all, that was going on at the time in 2015, for example when Good Star Ltd was disclosed by Bank Negara as not being PetroSaudi International entity, it was the same modus operandi again.

"I was already numb from the revelation from Sarawak Report on 1MDB," he added.

The PetroSaudi International phase is a separate and earliest stage in which 1MDB's funds were allegedly stolen.

1MDB had entered into a joint-venture with PetroSaudi in 2009 but Good Star Ltd, which was controlled by businessperson Low Taek Jho, was misrepresented as a subsidiary of PetroSaudi.

1MDB ended up sending US$1.03 billion (RM4.34 billion) to Good Star Ltd and the money was subsequently misappropriated.

Shahrol served as the 1MDB chief executive officer from 2009 until 2013.

Najib was at the time the prime minister and finance minister who by default is also the shareholder of 1MDB. He was also the 1MDB advisory board chairperson.

[More to follow] - Mkini