KEY HIGHLIGHTS
- Najib and Jho Low had a symbiotic relationship: witness
- Audit would've revealed US$700m went to Jho Low's company - Shahrol
- 1MDB CEO told by Jho Low no need to audit company in 2009
- Witness: Jho Low is 'far more effective' way to reach Najib
- Several names considered as TIA’s replacement
- Najib used MoF Inc minutes as shield against accusation: witness
- 1MDB money raised from RM5b bonds invested in PSI
- Shahrol appointed as 1MDB CEO by Najib
Najib and Jho Low had a symbiotic relationship: witness
11.50am - Then prime minister Najib Abdul Razak and wanted businessperson Jho Low had a symbiotic relationship, former 1MDB CEO Shahrol Azral Ibrahim Halmi testifies.
During examination-in-chief by lead DPP Gopal Sri Ram, the prosecution’s ninth witness says this is the impression in his mind on the duo's relationship between 2009 and 2010.
Gopal: What impression was in your mind of the accused (Najib) and Jho Low's relationship?
Shahrol: The relationship was symbiotic in the sense that Jho (Low) executed what Najib wanted and Najib's role was to approve decisions that are required not only by the company but also government machinery.
Audit would've revealed US$700m went to Jho Low's company - Shahrol
10.50am - An audit would have revealed that US$700mil from the US$1bil meant for a 1MDB-PetroSaudi joint venture was diverted to Jho Low's company Good Star Limited.
Former 1MDB CEO Shahrol Azral Ibrahim Halmi tells this to lead DPP Gopal Sri Ram during the examination-in-chief.
Shahrol says that back in 2010, 1MDB's Board of Advisors made a decision that there was no need for due diligence or auditing by the Auditor-General on the sovereign wealth fund.
Gopal: What would an audit had revealed?
Shahrol: The audit at that point in time (2010) would have revealed that we invested US$1bil with Petro Saudi International, but that US$300mil went to the joint venture company (between 1MDB and PetroSaudi) while US$700mil went to another company purportedly owned by PSI, which is Good Star Limited.
Good Star was previously reported as allegedly owned by wanted businessperson Jho Low.
1MDB CEO told by Jho Low no need to audit company in 2009
10.40am - A former 1MDB CEO tells the court that he had written a letter to the then prime minister Najib Abdul Razak in Dec 2009, stating there was no necessity for an audit exercise to be conducted on the company.
Shahrol Azral Ibrahim Halmi testifies that he was advised to write the letter to Najib and copy it to the then Auditor-General Ambrin Buang by businessperson Low Taek Jho, or Jho Low.
According to Shahrol, prior to writing the letter, 1MDB management received information that the Minister of Finance Incorporated (MOF Inc) wanted due diligence to be performed on 1MDB following the transfer of its shares from the Terengganu state government to MOF Inc.
"As per the normal course of events, I updated Jho Low, and he reverted back to me saying that an audit or due diligence by the Audit Department could present a political risk to Datuk Seri Najib."
According to Shahrol, he then asked for Najib's instruction for the next course of action through Jho Low.
The witness says that he was later told there was no need for an audit exercise on 1MDB as the company has already appointed (accounting firm) Earnst and Young, and that an audit report will be submitted to MOF Inc once it is ready.
To a question by DPP Gopal Sri Ram, Shahrol testifies that after he sent the letter to Najib, there was no adverse reaction from the premier to challenge its content.
Witness: Jho Low is 'far more effective' way to reach Najib
10.30am - Former 1MDB CEO Shahrol Azral Ibrahim Halmi testifies that it was "far more effective" for him to go through fugitive businessperson Low Taek Jho to reach then prime minister Najib Abdul Razak.
He testifies this in court when asked by DPP Gopal Sri Ram (above) to compare which way was more effective for him to get to the premier compared to Najib's then special officer Amhari Efendi Nazaruddin.
Gopal: You said that in order to access the accused, you either have to go through Jho Low or PMO officer Amhari?
Shahrol: Yes, (true) at the time.
Gopal: From your experience, which (way) proved more effective?
Shahrol: From my experience, Jho Low is far more effective.
Gopal: So you can get to the accused more effectively through Jho Low?
Shahrol: Yes.
This testimony by Shahrol comes as he had earlier told the court that he had no direct access to Najib back in 2009, and had to go through Jho Low or Amhari when he needed to reach the accused.
Several names considered as TIA’s replacement
10.25am - The court hears from a former CEO of 1MDB that several names were considered before the company changed its name from Terengganu Investment Authority.
Shahrol Azral Ibrahim Halmi says that among the other names deliberated as TIA's new name included MDB Wealth Berhad, Malaysia Development Berhad dan Malaysia Wealth and Capital Creation Berhad.
However, according to the witness, the names were prohibited by the Companies Commission as they are ‘controlled words’ (dikawal).
The company then received a letter from the then prime minister Najib Abdul Razak to register its name as 1Malaysia Development Berhad.
TIA's name was officially changed to 1MDB on Sept 25, 2009.
Najib used MoF Inc minutes as shield against accusation: witness
10.24am - Then premier Najib Abdul Razak used the minutes of a Minister of Finance Incorporated (MoF Inc) shareholders meeting to shield himself from accusation of misappropriation, the court hears.
Former 1MDB CEO Shahrol Azral Ibrahim Halmi testifies that this was done through the MoF Inc shareholders minutes which gives power to the Terengganu Investment Authority (TIA) board to conduct large transactions.
TIA, which was acquired by the government through MoF Inc, later morphed into 1MDB.
“Now, after the revelation by the investigation into the misappropriation that took place in 1MDB, I understood that the minutes of this shareholder meeting was intentionally released by Najib at that time (Sept 16, 2009) to shield Najib from accusation of misappropriation and then put (the) responsibility on the TIA board of directors," Shahrol reads from his Witness Statement.
He says this is because two days later (Sept 18, 2009), there was a board meeting to discuss on the use of funds from the TIA bonds to enter a joint venture project with Petro Saudi, which was a company owned by Prince Turki and Tarek Obaid.
It had already been established in court yesterday that 1MDB had in 2009, raised RM4.396bil from the selling of RM5bil bonds, which Shahrol said the difference in the amount accounted for between RM100mil and RM200mil of fees to AmBank while the other between RM500mil and RM600mil accounted for the selling of bonds at a discounted price.
The witness also said yesterday he learned from police last year that the bonds were sold at a discounted price to two companies based in Singapore and Hong Kong that were linked to Jho Low (above).
1MDB money raised from RM5b bonds invested in PSI
10.10am - The court hears from a former 1MDB CEO that a huge part of the money raised from the selling of bonds in 2009 was spent on investment in Petrosaudi International.
Shahrol Azral Ibrahim Halmi testifies that 1MDB used US$1bil, which was approximately RM3.4bil according to the exchange rate then, to invest in PSI on Sept 30, 2009.
He says the balance of about RM1bil in the 1MDB account was then used to service interest payments, or coupon payments, for the RM5bil bonds.
Shahrol appointed as 1MDB CEO by Najib
10am - Today’s hearing starts with former 1MDB CEO Shahrol Azral Ibrahim Halmi continuing his testimony by reading from his witness statement.
Shahrol, who served as the CEO from 2009 to 2013, testifies that he was officially appointed to the position by then prime minister Najib Abdul Razak, who was also chairperson of the 1MDB board of advisers, on Sept 17, 2009.
He says that the appointment by the prime minister was made in accordance to Article 68 of 1MDB's Memorandum and Articles of Association, which had been amended prior to that.
Shahrol says that the appointment was to signify that only the PM can appoint 1MDB board members and senior management.
9.53am - The trial resumes, with Najib entering the dock for the resumption of the prosecution’s examination-in-chief of former 1MDB CEO Shahrol Azral Ibrahim Halmi.
9.30am - Najib Abdul Razak enters the court and takes a seat at the front row of the public gallery to await proceedings to begin.
The prosecution's examination-in-chief of former 1MDB CEO Shahrol Azral Ibrahim Halmi enters the third day today.
With the ninth witness only having read up to page 57 of his 270-page witness statement yesterday, the examination-in-chief by lead prosecutor Gopal Sri Ram is still expected to be far from complete today.
As the 13th day of Najib Abdul Razak's RM2.28 billion 1MDB trial before Kuala Lumpur High Court judge Collin Lawrence Sequerah will resume around 9.30am this morning, Shahrol will continue where he left off yesterday.
Before proceedings were adjourned yesterday, Shahrol testified that Najib was the ultimate power in decision making within Terengganu Investment Authority (TIA) and later 1MDB, and his written permission was required, especially in terms of major investments, funds and national interest.
It is expected that the key witness will reveal explosive information on the goings-on with 1MDB during his testimony. - Mkini
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