The Malaysian Insight

Shahrol will be cross-examined by lead defence counsel Muhammad Shafee Abdullah on Low Taek Jho’s role in 1MDB in 2010 and beyond.

Yesterday, he testified that AmBank had never informed the Terengganu Investment Authority (TIA) board or Najib that it was involved in bond flipping that allegedly made companies linked to Low make millions of ringgit.

Shahrol was also CEO of TIA, which was 1MDB’s precursor. The witness told the court the TIA board then was not aware that Aktis Capital Singapore Pte Ltd and Country Group Securities, based in Thailand, were secondary subscribers in a RM5 billion bonds sale that was to raise money to invest in Pulau Bidong.

Low’s father, Larry, was linked to Country Group, according to documents tendered to the court. Shahrol also agreed with the defence’s suggestion that Najib was not aware of the bond flipping, or that Low was allegedly behind them.  

The witness also testified that Low was the sole link between Najib and 1MDB despite the fugitive businessman having had no official position at the sovereign wealth fund.

Najib, 66, is on trial for four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount.

He 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 him of conspiring with the Penang-born Low, who is on the run, to defraud the state investor.

Najib is represented by a dozen lawyers led by Shafee.

Former Federal Court judge Gopal Sri Ram is leading the prosecution before Kuala Lumpur High Court judge Collin Lawrence Sequerah. – October 10, 2019.

The Malaysian Insight brings you today’s proceedings live:

12.14pm: Court adjourns for the day. Trial will resume on Monday.

12.13pm: Shahrol asks Sequerah again if he can be excused for the afternoon.

Sequerah: What is wrong with you?

Shahrol: I’m feeling down and under the weather.

Sequerah: You can’t continue?

Shahrol: No, I cannot.

11.36am: Shahrol says the TIA federalisation was rushed through as per instructions by Low.

11.21am: For the federalisation of TIA, Shahrol had suggested that it be run like Petronas.

Shafee: Do you know why you compared it to Petronas?

Shahrol: Low suggested it.

Shafee: Of course.

Shafee tells Sequerah that Najib will be up shortly.

Sequerah tells Shafee to impress upon Najib that it is not the custom of the court to wait for an accused.

Shafee tells Sequerah that he will do that.

Cross-examination continues.

10.49am: Sri Ram tells Sequerah that the witness is unwell.

The witness asks the judge to halt proceedings until after lunch.

Sequerah tells the witness to proceed until lunch and he will make a decision then.

Court takes a short break.

10.47am: Shafee suggests that as a CEO, Shahrol was a table ornament who didn’t do any work.

Shahrol does not agree.

Shafee also suggests this is because Shahrol had taken instructions from Low without doing background checks or questioned Low’s motives.

Questioning stops for a moment.

10.44am: Shafee asks Shahrol if he was there.

Shahrol gives a sarcastic comment that he had answered this question four times already.

Shafee: Don’t be funny with me. I can be funny with you also.

Shahrol says he didn’t give any explanation to the palace representative.

Shahrol says before the meeting Low had told him to expect these questions from the palace.

Shafee: You didn’t think to find out further?

Shahrol: This was a shareholder matter, I thought he was representing Najib as a shareholder.

10.42am: Shafee refers to a meeting on June 30, 2009 chaired by then Treasury secretary-general Wan Abdul Aziz Wan Abdullah. It was also attended by then Najib’s aide Amhari Efendi Nazaruddin.

During the meeting, there was a question from a Terengganu palace official who questioned Low’s role because he had been flaunting the royalty’s name.

10.36am: Shahrol says he was instructed to write down the suggestion to federalise TIA.

He says it was to get the ball rolling on federalising.

10.30am: Shafee suggests given Shahrol’s background of “playing Mr Postman”, he now knows from the cabinet meeting minutes that Low was not telling the truth.

Shahrol agrees.

10.28am: Shahrol is speaking about the federalisation TIA would be under the federal government and not the Terengganu government.

of TIA, says this was done with instruction of Low.

He says he did not know about a written decision by the cabinet and Najib, and was only told by Low.

He says he was only given enough information to do his part.

9.52am: Court is in session.

Shahrol is back on the stand. – October 10, 2019.