17% of US$500 million payment went directly to Good Star, court hears
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PETROSAUDI (PSI) CEO Tarek Obaid transferred about US$83 million (RM250 million) to a company controlled by fugitive financier Low Taek Jho, days after 1MDB put up US$500 million as part of a Murabaha financing agreement in September 2010, the high court heard today.
At Najib Razak’s criminal trial today, the prosecution’s 9th witness – former 1MDB CEO Shahrol Azral Ibrahim Halmi – verified documents that showed the US$83 million transfer came days after US$500 million arrived in PSI accounts, which 1MDB had staked for a Murabaha financing agreement with PSI.
The US$500 million was supposed to give 1MDB returns of 8.25% per annum.
The sum was transferred to 1MDB-PetroSaudi Ltd’s bank account, held by JP Morgan Swiss SA, on September 14, 2010.
The joint venture company was controlled by PSI, then led by Tarek, who prosecutors said had conspired with Low, commonly known as Jho Low.
Shahrol then verified further documents tendered to court by the defence, which showed that on September 23, 2010, Tarek had instructed JP Morgan to transfer the equivalent of CHF82 million (US$83 million) from his private account to an RBS Coutts bank account held by Good Star Ltd.
Investigators later revealed that Good Star was controlled by Low.
The 1MDB board in July 2010 considered a plan to invest US$1 billion into a joint venture for a 4.23% stake in French energy firm GDF Suez.
The proposal was abandoned in favour of the Murabaha financing, which was perceived to be less risky.
When cross-examined, Shahrol said he did not know what happened to the US$500 million transferred to the joint venture company, 1MDB-PetroSaudi International Ltd.
The 49-year-old witness said he was never shown documents whether the money was used to purchase GDF Suez shares or otherwise, adding that PSI had taken 100% control of the joint venture company in 2009.
Former prime minister Najib, 66, is on trial on four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount.
Prosecutors have accused him of conspiring with the Penang-born Low to defraud the sovereign wealth fund.
Najib is represented by a dozen lawyers led by Muhammad Shafee Abdullah. Former Federal Court judge Gopal Sri Ram leads the prosecution before judge Collin Lawrence Sequerah. – November 6, 2019.