Witness: 1MDB-PSI JV discussed on yacht during Najib' vacation in South France

KUALA LUMPUR (Bernama): The High Court here was told on Wednesday (Sept 25) that the joint-venture project between 1Malaysia Development Berhad (1MDB) and PetroSaudi International Ltd (PSI) came about and was discussed during Datuk Seri Najib Razak’s vacation in Southern France on board a yacht with Prince Turki bin Abdullah in August 2009.

Former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, 49, said he only came to know of the discussion between the two leaders through fugitive businessman Low Taek Jho, better known as Jho Low.

"Jho Low informed me before the discussion that Najib had met with Raja Abdullah and both leaders had agreed to form a joint-venture worth USD2.5 billion for investment in both countries.

"Jho Low also stated that he was personally present during the discussion with Prince Turki, and Najib directed him (Jho Low) to manage and provide coordination between 1MDB and PSI," he said.

The key witness said he did not make any counter-check with Najib on the matter because based on his experience with Jho Low from the early formation of Terengganu Investment Authority Berhad (TIA) and on Najib’s mandate to Jho Low earlier, he considered the PSI joint-venture initiative as Najib’s personal directive and must be implemented.

"In fact, the contents of all the documents, letters and e-mails given to me by Jho Low from PSI were consistent and strengthened my belief that they were truly agreements between the governments of Malaysia and Saudi Arabia.

"Based on these factors, I did not make any counter-check with Najib on these matters," said the ninth prosecution witness, while reading the witness statements during examination in chief by Senior Deputy Public Prosecutor Datuk Seri Gopal Sri Ram on the 13th day of the trial on Najib’s case involving 1MDB funds.

Shahrol Azral however said Casey Tang, who was a senior officer of 1MDB at the time, was given the responsibility of managing the joint-venture with PSI.

"I told Jho Low that I had no experience in corporate matters to execute the joint venture. Jho Low immediately suggested that the responsibility to manage the JV with PSI be given to Casey.

"Casey was the most senior 1MDB executive at the time. As such, Jho Low had more direct dealings with Casey to execute the agreement with PSI. I had complied with Jho Low’s suggestion to hand over the responsibility to manage the JV to Casey Tang.

"This was because in the TIA then there was no one other than Casey who had knowledge and experience in finance including fund raising and corporate structure.

"Besides, I trusted Casey to manage the matter because Casey was involved with TIA before I came into the picture, although officially her appointment was made one week after I was appointed as TIA director and CEO, ” he said, adding that he had an engineering background.

In addition, he said that based on his observation, he found that relations between Jho Low and Casey were very close and that Casey had deep knowledge on investments.

Explaining further, the witness said initially Jho Low sent "introductory email” to him and PSI CEO, Tarek Obaid and he replied the email and asked for more information on PSI and the proposed investments.

'There was a reply from Patrick Mahony from PSI. However, for subsequent transactions, I directed Casey to deal directly with PSI, as well as Jho Low for discussions on the agreement and 1MDB internal process such as the BOD paper and so on," he added.

Najib, 66, faces four counts of using his position to obtain bribes amounting to RM2.3 billion in 1MDB funds and 21 charges of money laundering involving the same funds.

The Pekan MP is alleged to have committed four corruption offences at the AmIslamic Bank Berhad branch, Jalan Raja Chulan, Bukit Ceylon here between Feb 24 2011 and Dec 19,2014, while all the charges on money laundering between March 22,2013 and Aug 30,2013, at the same place.

The hearing before Justice Collin Lawrence Sequerah is proceeding. - Bernama