Jho Low orchestrated 1MDB operations on Najib's behalf - former CEO

NAJIB TRIAL | A former 1MDB CEO testified in court today that he believed Low Taek Jho, or Jho Low, had played the role of "orchestrator" on behalf of Najib Abdul Razak to make sure all their plans in 1MDB would work out.

On the 12th day of 1MDB criminal trial against Najib, Shahrol Azral Ibrahim Halmi said he was confident of this as all talking points and action plans related to the company as relayed to him by Low were consistent with Najib's actions afterwards.

He told the High Court in Kuala Lumpur that these included the issuance of Islamic Medium-Term Note (IMTN) bonds, joint-venture between Petrosaudi International and 1MDB, and 1MDB's acquisition of Tanjong Energy, Genting and Jimah powerplants, among others.

"This was why I always believed that all the talking points and action plan brought by Low had received the blessing of Najib.

"This belief was strengthened by facts that every time I checked with Najib on instructions given by Low, he (Najib) always confirmed that he had agreed to them and he ordered me to take the next action accordingly," Shahrol said under examination-in-chief by DPP Gopal Sri Ram.

Shahrol, who served as 1MDB CEO from 2009 until 2013, said he checked with Najib on the instructions received from Low more frequently in 2009 when he was still new and unsure of the working process.

"I always wanted to be clear and be sure there was no miscommunication with the main shareholder, which is Najib."

After 2009, he added, confirmation with Najib happened less frequently and less direct.

As an example, Shahrol (photo) said the indirect way he used was to update Najib from time to time, like on process of acquisition of powerplants by 1MDB in 2012.

This was so that Najib would know the progress and have the opportunity to correct any misconception that he might have then, he added.

Shahrol testified that there was, however, no such correction came from Najib.

'All major decisions on 1MDB came through Jho Low'

The court also heard that during Shahrol's tenure as 1MDB CEO, all major decisions as per the company's Article 117 of Memorandum of Association were delivered to him through Low.

According to his testimony, Article 117 of 1MDB's M&A stipulated that all decisions by the company regarding its financial activities, investments, restructuring, interests, securities and national policies must take into account the view of the prime minister as a representative of the federal government.

Shahrol said Low always emailed him or used Blackberry Messenger to send documents of talking points and action plans. 

It included details such as the objectives of the Terengganu Investment Authority (precursor of 1MDB), the rationale behind loan taking and the government-to-government relationship between Petrosaudi International and 1MDB, as well as Aabar/IPIC and 1MDB.

"Sometimes or whenever the need arose, we would also go to his (Low) house at Jalan Kia Peng where Low would explain on further steps that I have to take.

"Low would say that these actions were instructions that had received blessing from Najib, who carried the mandate of Article 117 to be accomplished by all of us who are in the working team."

Shahrol testified that 1MDB also practiced layered working system, where they would only know what the other teams are working on, only on a need-to-know basis.

He said the layered and confidential workflow was known to them in the implementer level as "work in silo", a term which Low had himself told Shahrol about. - Mkini