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Thursday, October 17, 2019

NAJIB 1MDB TRIAL - Day 23: Defence has 45pct more to cross-examine ex-1MDB CEO - Shafee



The criminal trial of former prime minister Najib Abdul Razak involving the alleged abuse of power and money laundering of 1MDB funds enters its 23rd day today at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings.

Summary of Najib’s 1MDB ‘donation’ case

Najib is facing 25 charges of receiving RM2.28 billion, which originated from 1MDB through Tanore Finance Corp, a company owned by Eric Tan, a close associate of fugitive businessperson Jho Low.

KEY HIGHLIGHTS
  • Defence has 45pct more to cross-examine former 1MDB CEO: Shafee
  • Ex-1MDB CEO signs minutes of 2011 meeting that he didn’t attend
  • Shahrol agrees Najib was ‘Emperor of 1MDB’
  • Ex-CEO - In reality, Najib has the ultimate power in 1MDB
  • Najib was the boss and I followed his instructions, says ex-1MDB CEO
  • Shahrol: I told Najib about US$700m transfer to Jho Low-linked Good Star
  • Najib wore the wrong hat in ex-1MDB CEO's appointment letter
  • Najib wears three hats in the release of 1MDB confidential info - Shahrol
  • Ex-CEO agrees PM's far-reaching powers in 1MDB not uncommon
  • Provision in Section 56 IRDA Act not same as Article 117 1MDB M&A - witness
  • Jho Low proposed insertion of Article 117 in memorandum, court hears
  • 'Ultimate power' with 1MDB board despite amendments to memorandum

Thank you for following Malaysiakini's live report
4.50pm - Thank you for following our live report today.

Defence has 45pct more to cross-examine ex-1MDB CEO: Shafee
4.45pm - Najib Abdul Razak's lead counsel Muhammad Shafee Abdullah says that the defence has another 45 percent more in its cross-examination of former 1MDB CEO Shahrol Azral Ibrahim Halmi.
"We have 45 percent more to go (in cross-examination of Shahrol)," Shafee says, adding that the defence has so far covered 55 percent of what it wanted to question the ninth prosecution witness.
He was speaking to journalists in a press conference at the lobby of the Kuala Lumpur Courts Complex, Jalan Duta, after former prime minister Najib's RM2.28 billion 1MDB trial this afternoon.

4.05pm - The hearing is adjourned early for the day, as lead defence counsel Muhammad Shafee Abdullah has an eye examination appointment with his doctor.
In his request for early adjournment, Shafee tells the court that he needs to do the check-up as one of the procedures for an eye operation which he would undergo this Saturday.
Justice Collin Lawrence Sequerah then adjourns the court to 9.30am next Monday.

Ex-1MDB CEO signs minutes of 2011 meeting that he didn’t attend
4pm - The court hears from former 1MDB CEO Shahrol Azral Ibrahim Halmi that he signed the minutes of a meeting in 2011 without attending it.
According to the witness, he was given the minutes of the March 30, 2011 meeting by 1MDB-linked businessperson Low Taek Jho, who told him that then prime minister Najib Abdul Razak had agreed to it and Shahrol should sign it too.
Shahrol also agrees that there was untruth in the minutes, as it stated that he was the person who recorded the minutes.
"This was not truthful record but I signed on the basis that I believe Jho Low was working with Najib on these matters, which Najib wanted to be executed," he testifies.

Shahrol agrees Najib was ‘Emperor of 1MDB’
3.25pm - Then prime minister Najib Abdul Razak is described as "Emperor of 1MDB", the sovereign wealth fund's former CEO Shahrol Azral Ibrahim Halmi testifies.
During cross-examination, Shahrol (above) agrees to a question from lead defence counsel Muhammad Shafee Abdullah on whether the ninth witness is trying to say that Najib was like the "Emperor of 1MDB".
The answer comes on the heels of back and forth between Shahrol and Shafee whether the 1MDB's board of directors or the board of advisors’ chairperson Najib had the true decision-making power.
Shafee: Are you saying the prime minister (Najib) was the ‘Emperor of 1MDB’, with no checks and balances?
Shahrol: I will say yes.

Ex-CEO - In reality, Najib has the ultimate power in 1MDB
3.20pm - A former 1MDB CEO tells the court that despite the terms stated in the law provisions that bind the company, the reality was that the then prime minister Najib Abdul Razak held ultimate power.
Shahrol Azral Ibrahim Halmi testifies this under cross-examination by lead defence counsel Muhammad Shafee Abdullah, who confronts him with legal provisions that stipulate the power held by 1MDB board of directors in making decisions for the company.
"I can only testify to what had happened. And what happened at that time, to me, we consider these minutes taken and signed by Najib as instructions by the prime minister. As directors, we are duty-bound to execute his wishes.
“So that’s what happened. Whether it was in compliance with the rules, it was fair that you raised (about the law provision), but this is what happened.
“From 2009 until 2013 when I left as CEO, I continued to see the prime minister Najib as the ultimate power in 1MDB."
Shafee then continues to press Shahrol, saying that while the defence is not disputing the fact that Najib has the ultimate power in 1MDB, the power to make decisions still lie with the board instead of Najib.
To this, Shahrol says it was not what was always in practice in 1MDB.

Najib was the boss and I followed his instructions, says ex-1MDB CEO
3pm - Then prime minister and chairperson of 1MDB board of advisors Najib Abdul Razak was "the boss" whose instructions the then sovereign wealth fund CEO Shahrol Azral Ibrahim Halmi followed, the court hears.
The ninth witness Shahrol testifies this when Najib's lead defence counsel Muhammad Shafee Abdullah questions him on the validity of the alleged meeting between Shahrol and Najib at the latter's house on Oct 2009.
"At that time, because Najib wore three hats, I made no distinction between which role he played.
"When he decides, the same decision applies regardless whether as prime minister, finance minister, or chairperson of the (1MDB) board of advisors. He (Najib) was the boss and I follow his instructions," Shahrol says.

Shahrol: I told Najib about US$700m transfer to Jho Low-linked Good Star
2.53pm - Then prime minister Najib Abdul Razak was informed about US$700 million transfer of monies into Jho Low-linked Good Star Limited, former 1MDB CEO Shahrol Azral Ibrahim Halmi testifies.
The ninth witness says that Najib, as then chairperson of 1MDB board of advisors, was informed when Shahrol met the then prime minister at the latter’s house for a meeting on Oct 16, 2009.
Shahrol is replying to Shafee's questioning about the nature of the meeting, which minutes are presented in court today.
The witness says Najib had then asked about the PetroSaudi International (PSI) re-evaluation of assets linked to the joint venture, among others, before signing off on the document presented to him by Shahrol.
"This was also a follow up from the (1MDB) board's instruction to me to present to Najib the summary of what transpired shortly following the issue with PSI, in which US$700 million was transferred to Good Star.
"This was also the time when I had gone through with PSI to ask them for their input on the proposal.
“The intention here is for 1MDB to make sure the chairperson of the board of advisors is made aware and for him to sign off on the points stated in point Six (of the document) which is the agreed part.”

Najib wore the wrong hat in ex-1MDB CEO's appointment letter
2.45pm - Najib Abdul Razak had signed a letter appointing Shahrol Azral Ibrahim Halmi as CEO of 1MDB in 2009 not in his capacity as the then prime minister, the court hears.
According to the letter tendered as evidence, Najib had instead signed the letter in his capacity as chairperson of 1MDB board of advisers.
It had been established earlier during the trial that under 1MDB memorandum and articles of association (M&A), appointments of 1MDB top management members can only be made by the prime minister of Malaysia.
Shahrol, who is a prosecution witness in the trial, however, disagrees that this had made his appointment as the company CEO invalid.
Because it was the same person who signed it albeit, in a different capacity, the witness says.
Shahrol, however, agrees that it was important for the right hat to be worn, as he had stressed earlier during the trial.

2.37pm - Proceedings resume after lunch break.
12.39pm - The court adjourns for lunch and will resume at 2.30pm.

Najib wears three hats in the release of 1MDB confidential info - Shahrol
12.09pm - It was a problem that then prime minister Najib Abdul Razak was wearing three hats in the approval process to release confidential information on 1MDB, testifies the sovereign wealth fund's former CEO Shahrol Azral Ibrahim Halmi.
The ninth witness says that this is due to Najib not only being the chairperson of 1MDB's board of advisors but also as then prime minister and finance minister.
"The (1MDB) board of directors decide, the (1MDB) board of advisors approve and this letter (from Shahrol as then 1MDB CEO to Najib dated Dec 2009) is to formalise approval from the prime minister and finance minister.
"The problem is that the same man (Najib) wears three hats. He already endorsed it (as chairperson of 1MDB board of advisors).
"This letter is asking for his approval wearing the other two hats, as it is addressed to the prime minister and finance minister," Shahrol says.

Ex-CEO agrees PM's far-reaching powers in 1MDB not uncommon
11.25am - Former 1MDB CEO Shahrol Azral Ibrahim Halmi agrees with the defence that the prime minister's far-reaching powers, as seen in Article 117 of the sovereign wealth fund's Memorandum and Articles of Association (M&A), is not uncommon.
The ninth witness agrees with former prime minister Najib Abdul Razak's lead defence counsel Muhammad Shafee Abdullah (above) during cross-examination.
Shafee: This kind of far-reaching power is not uncommon?
Shahrol: Yes.
Shafee then makes reference to various Acts such as Section 3 (2) of the Petroleum Development Act 1974, which grants the prime minister power to issue a direction to Petronas from time to time.
When Shafee submits that such powers are provided to the prime minister due to Petronas being a strategic company for the government and that 1MDB is also intended to be a strategic company, Shahrol agrees.

Provision in Section 56 IRDA Act not same as Article 117 1MDB M&A - witness
11.10am - During the cross-examination on former 1MDB CEO Shahrol Azral Ibrahim Halmi, lead defence counsel Muhammad Shafee Abdullah tells the witness to compare Section 56 of the Iskandar Regional Development Authority (IRDA) Act and Article 117 of the 1MDB memorandum and article of association (1MDB M&A).
Shafee then puts to Shahrol that while the two provisions are not identical, they are more or less the same.
It is understood that the defence is trying to establish whether Article 117 of 1MDB M&A is the first of its kind, and compare it to the IRDA Act, which was enacted in 2007.
For the record, Article 117 of 1MDB M&A stipulates that amendments to the M&A as well as the appointment or removal of directors, and any financial commitments must be approved by the prime minister.
The witness, however, testifies that he cannot see the two provisions as the same.
"Honestly, I’m struggling to see that (similarities). Because here (Section 56 of IRDA Act) it says the prime minister can make changes (to provisions in the act) after consultation with state authority.
"But here (Article 117 of 1MDB M&A) it says you cannot make changes to the M&A without approval from the PM."

11.04am - Proceedings resume after the break to allow the defence to retrieve documents.
10.20am - The court goes on a short stand down to allow the defence team to fetch a box of documents for their cross-examination on prosecution witness Shahrol Azral Ibrahim Halmi.

Jho Low proposed insertion of Article 117 in memorandum, court hears
10.08am - Wanted businessperson Jho Low (below) proposed for the insertion of Article 117 into 1MDB's Memorandum and Articles of Association (M&A), the court hears.
Former 1MDB CEO Shahrol Azral Ibrahim Halmi testifies that Article 117 was similar to the sovereign wealth fund's predecessor Terengganu Investment Authority (TIA) Article 9(a).
Shahrol says the amendment was also done on the advice of among others, lawyers Wong and Partners.
"For the amendment, the context on replacing the "federal government" (in Article 9(a)) with "prime minister" (in Article 117) came from Jho (Low). This is what Najib wanted to make it unambiguous," Shahrol says.
When Shafee asks whether the witness had ever clarified with Najib if this was what the then prime minister wanted, Shahrol admits he did not specifically do so.

'Ultimate power' with 1MDB board despite amendments to memorandum
10.02am - 1MDB still have the ultimate power to run the company despite the three amendments to its memorandum and articles of association (M&A), which included the insertion of Article 117, the court hears.
Former 1MDB CEO Shahrol Azral Ibrahim Halmi agrees to this assertion from lead defence counsel Muhammad Shafee Abdullah during cross-examination.
Shafee: You notice that and agree that despite the three amendments (to 1MDB's M&A), the board (was) still given the ultimate power to run the company without shareholder (approval)?
Shahrol: Yes.
Article 117 of 1MDB grants Najib wide powers as chairperson of the fund's board of advisors.

9.36am - Najib Abdul Razak enters court as proceedings begin.

9.30am - Accused Najib Abdul Razak enters the High Court and takes a seat at the front row of the public gallery to await proceedings to begin.
The former prime minister is seen conferring with his lead defence counsel Muhammad Shafee Abdullah.
Also seen in court are lead DPP Gopal Sri Ram and other members of the defence team, as well as former 1MDB CEO Shahrol Azral Ibrahim Halmi, who is sitting in the witness box.

Najib Abdul Razak's defence team will resume their cross-examination of the ninth prosecution witness, former 1MDB CEO Shahrol Azral Ibrahim Halmi on the 23rd day of the former prime minister's RM2.28 billion 1MDB trial today.
Lead defence counsel Muhammad Shafee Abdullah is set to continue questioning Shahrol over the alleged telephone call by Najib to the sovereign wealth fund's then chairperson, Mohd Bakke Salleh, in the middle of a board meeting on Sept 26, 2009, among other contentious issues linked to the case.
Yesterday, during proceedings before Kuala Lumpur High Court judge Collin Lawrence Sequerah, Shafee had put some questions to Shahrol over the purported telephone call and at the same time had indicated to the court that the defence will grill Shahrol in more depth about it today.
Star witness Shahrol, in his 270-page witness statement, had earlier testified that Najib called Mohd Bakke during the 1MDB board meeting, which was held to decide whether 1MDB should proceed with a proposed joint-venture with PetroSaudi International.
Yesterday, the witness testified that Najib's telephone call at that point in time acted to reassure doubts expressed by certain members of the 1MDB board over the proposed deal in which wanted businessperson Jho Low is allegedly involved in.  - Mkini

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