The Malaysian Insight

AMBANK never told the Terengganu Investment Authority board or the accused that it was involved in bond flipping that allegedly made companies linked to Low Taek Jho millions of ringgit, former 1Malaysia Development Bhd CEO Shahrol Azral Ibrahim Halmi testified at Najib Razak’s trial today.

This was in relation to a bond sale by Terengganu Investment Authority (TIA) on May 29, 2009, which sought to raise RM5 billion to develop Pulau Bidong in Terengganu.

The issuance were for 30-year Islamic federal guaranteed bonds paying a coupon rate of 5.75%.
 
Shahrol, who was CEO of TIA and later 1MDB from 2009 to 2013, told the Kuala Lumpur High Court today that neither TIA’s board nor Najib were ever informed by the bank that two foreign companies linked to Low, commonly known as Jho Low, bought bonds at a steeply discounted rate and sold it to the open market at face value.

Najib, 66, faces four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB and 21 charges of laundering the same amount.

Prosecutors have accused the former prime minister of conspiring with the Penang-born Low to defraud the state investor.

When cross-examined by lead defence counsel Muhammad Shafee Abdullah today, Shahrol said the TIA board then was not aware that Aktis Capital Singapore Pte Ltd and Country Group Securities, based in Thailand, were secondary subscribers in the bonds sale.

Low’s father, Larry, was linked to Country Group, according to documents tendered to court yesterday and today.

The two companies were allowed to buy bonds at 88% of face value, which were later sold to the Employees Provident Fund, Social Security Organisation and insurance companies.

The 1MDB board of directors summoned AmBank in October 2009 to explain why 1MDB had only received RM4.3 billion for its RM5 billion Islamic medium-term notes, Shahrol testified. Executives from the bank made no mention then of Aktis or Country Group.

Shahrol agreed with a suggestion from the defence that AmBank executives might have conspired with Low to defraud 1MDB.

The witness also agreed with another suggestion that Najib was not aware of the bond flipping or that Low was allegedly behind them.  

Shafee: I want to ask you squarely. Now that you know that you never knew this… that he (Low) made profit right under your nose, do you have evidence that the prime minister knew Jho Low made money?

Shahrol: I don’t have any evidence.

Shafee: There is no evidence right? Until now there is no evidence. Did you have any idea that Jho Low made secret profits back then?

Sahrol: No, I did not.

Najib is represented by a dozen lawyers, led by Shafee.  

Former Federal Court judge Gopal Sri Ram leads the prosecution before Kuala Lumpur High Court judge Collin Lawrence Sequerah.

The trial continues. – October 9, 2019.