The Malaysian Insight

NAJIB Razak’s 1MDB trial enters its 34th day today with the prosecution’s ninth witness, former 1Malaysia Development Berhad (1MDB) CEO Shahrol Azral Ibrahim Halmi, returning to the stand.

Proceedings were paused this morning to allow for a decision on the former prime minister’s separate SRC International Sdn Bhd trial.

SRC International trial judge Mohd Nazlan Mohd Ghazali ordered Najib to enter his defence on charges of misappropriating RM42 million from the former 1MDB subsidiary.

Meanwhile, at the 1MDB trial, Najib, 66, is accused of four counts of power abuse to enrich himself with RM2.3 billion from the state fund MDB and 21 counts of laundering the same amount.

Lead defence counsel Muhammad Shafee Abdullah will continue cross-examining Shahrol.

On Thursday, Shahrol testified that between September 2009 and October 2011, 1MDB paid a total of US$1.83 billion (RM5.5 billion then) to entities that were later revealed by investigators to be sham companies.

The amount was transferred to companies controlled either by Low Taek Jho, better known as Jho Low, or PetroSaudi International CEO Tarek Obaid, the high court heard.

The transactions include US$300 million to 1MDB-PetroSaudi Ltd and US$700 million to Good Star Ltd on September 30, 2009, purportedly as cash capital for a 40% stake in a joint venture with PetroSaudi International.

It also included US$830 million paid up by 1MDB as part of two Murabaha financing agreements.

Investigators later revealed that Good Star was controlled by Low while the joint venture company was 100% controlled by PetroSaudi International.

The prosecution has accused Low, Tarek and former prime minister Najib of conspiring to defraud the state investor of billions of ringgit.

Najib, then the finance minister, was the sole shareholder of 1MDB as head of Minister of Finance Inc. He was also chairman of 1MDB’s advisory board.

He is represented by a dozen lawyers. Former Federal Court judge Gopal Sri Ram leads the prosecution before judge Collin Lawrence Sequerah.

The Malaysian Insight brings you today’s proceedings live:

12.35pm: Court resumes its session.

Sri Ram tells the judge that the witness is not well, and he will need to recuperate for a day to give his full attention during the cross-examination.

Shahrol also tells the judge that he needs a break.

Sequerah allows for this.

1MDB trial is adjourned until Wednesday morning.

10.07am: Shafee calls time on the cross-examination. Najib will now head across the court complex to justice Nazlan’s court to hear the decision on the SRC International case.

9.44am: Shahrol says he had requested former 1MDB general counsel Jasmine Loo to work for the firm.

He says Low initially was not in favour of Loo’s role in 1MDB, but eventually allowed it.

9.34am: Shahrol says Nik Faisal was appointed by Najib.

Shafee asks Shahrol if he has the appointment letter as the defence does not have it.

Shahrol says he will check with the investigators.

9.33am: Shafee asks Shahrol about the role of former CEO Nik Faisal Ariff Kamil at 1MDB. Shafee asks him if he knew what Nik Faisal was earning.

Shahrol says he doesn’t know.

9.27am: Shahrol takes the stand. – November 11, 2019.