The Malaysian Insight

KUALA Lumpur High court heard today how Sultan of Terengganu, Sultan Mizan Zainal Abidin, had ordered a former 1Malaysia Development Bhd (1MDB) director to suspend the issuance of Islamic medium-term notes used to secure a RM5 billion loan for the then Terengganu Investment Authority (TIA) fund.

This led to convicted former prime minister Najib Razak questioning the former 1MDB board director Ismee Ismail and former 1MDB chief executive officer Shahrol Azral Ibrahim Halmi about why they had agreed to do so.

Ismee testified that Najib called board in after they had signed, in the presence of Sultan Mizan, the resolution to delay the bond issuance.

Ismee said Najib had asked them: “Why did you sign it?” after they have briefed him of their meeting with the sultan.

The 2009 bond was for the joint development of Pulau Bidong, Terengganu, with Abu Dhabi’s state owned Mubadala Investment Company.

Ismee said the process in obtaining notes and government guarantee from the federal government was managed by Shahrol and fugitive businessman Low Taek Jho.

On May 22, 2009, Ismee said that he and Shahrol were summoned to face the sultan at the Terengganu Palace immediately.

“I feel that this (the call) is relevant to TIA,” he said.

Ismee was appointed a TIA director by Sultan Mizan.

The 13th prosecution witness of Najib’s 1MDB-Tanore trial said that the sultan informed him he wanted the notes to be postponed.

“Tuanku stated that his interest and his concern is the well-being of his state and his people,” he said.

The sultan’s elder sister, Tengku Rahimah Puteri Sultan Mahmud, was present in the meeting room.

“Everyone’s reaction was silence and I just replied: ‘Your concern is my concern’.

“In my opinion, this was initiated at His Majesty’s will and if His Majesty himself wishes to postpone it, it need not be questioned.

“Shahrol and I proceeded to sign the resolution in front of Tuanku. At the same time, Tuanku also signed the resolution,” Ismee said.

After signing the resolution, he said that they and the sultan circulated it.

While on his way to the car park, Ismee said that Shahrol told him that the notes cannot be postponed because of the instructions given to AmInvestment Bank Bhd, the lead arranger of the issuance.

“Shahrol told me: ‘We have already pushed the button’ and I told Shahrol to resolve the matter.

“I did not contact anyone at the time to seek views or any advice and left it to Shahrol to resolve the issue,” Ismee said.

When he was in his office at Tabung Haji, Ismee said he received a call from Shahrol to visit Najib at his house in Jalan Langgak Duta, Kuala Lumpur.  

“I arrived at Najib’s house at about 8-8.30pm. When I entered, I found Shahrol alone in the living room. I joined him in waiting for Najib, who came down after a few minutes.

“I briefly explained to him about what happened during the meeting with Tuanku Mizan in the afternoon. 

“Najib’s first response at that time was ‘why did you sign it?’. He also asked why we did not appeal to Tuanku to give us time to think,” Ismee said.

The witness said he told Najib this is an order from the sultan.

“I think Najib really wants the issuance of the notes bond to continue based on the reaction and intonation of his voice.

“At the time, I thought it was already a problem outside my jurisdiction. I met with Tuanku to implement what he wants and I have also met with the prime minister. 

“So I went home and left it to them to sort it out,” Ismee said.

Najib, 68, is facing 25 charges of abuse of power and money laundering regarding RM2.28 billion in 1MDB funds deposited into his AmBank accounts between February 2011 and December 2014.

He faces up to 20 years in prison if convicted.

The trial continues before high court judge Collin Lawrence Sequerah. – November 17, 2021.