The Malaysian Insight

FORMER 1Malaysia Development (1MDB) CEO Shahrol Azrol Ibrahim was taking orders from then prime minister Najib Razak when the sovereign wealth fund lost US$700 million to Good Star, former finance minister II Ahmad Husni Hanadzlah told the Kuala Lumpur High Court today.

Husni was testifying at the trial of Najib, who is accused of misappropriating RM2.28 billion of 1MDB funds in 2011-13.

He faces 25 charges of power abuse and money laundering.

Husni had previously testified that Najib had told him not to get involved in 1MDB and SRC matters.

Yesterday, Najib’s lawyer Muhammad Shafee Abdullah called Shahrol a criminal, based on testimony given by former 1MDB board chairman Mohd Bakke Salleh.

When asked what he thought about Bakke’s statement, Husni, the prosecution’s 20th witness, said Shahrol’s services were ended in 2016 after the mismanagement at 1MDB had taken place.

“Why was he appointed to the prime minister’s office after that?,” Husni threw back at Shafee.

Today, under re-examination by lead prosecutor Gopal Sri Ram, Husni said Shahrol took orders from Najib.

“It was put to you that Bakke had described Shahrol as a criminal. Are you aware who Shahrol was taking instructions from?” Sri Ram asked Husni.

Husni pointed to Najib, while naming the accused.

Sri Ram asked Husni if he knew if Shahrol had received any perks.

“I don’t know,” Husni said. “He received his salary, which is normal.”

Sri Ram asked Husni who made the decisions in 1MDB.

“As far as 1MDB is concerned, did you have any decision-making power?” asked Sri Ram.

Husni replied no.

“To the best of your knowledge, who had the decision making power?” Sri Ram said.

“Najib Tun Razak,” said Husni.

Husni said that when he raised the issue that Najib could form a company without a feasibility study, Najib had told him that he would continue; that was in early 2009.

“In late 2009 when the company invested in the joint venture with PetroSaudi International, I told him that firstly, there is no oil well yet. Then if there is no petrol we will lose the investment.

“Secondly, 1MDB has no track record with petroleum.

“Thirdly, (I said) why not let Petronas (as they have the expertise).

“He (Najib) mentioned to me, you don’t interfere anymore in 1MDB.

“It showed that the power was with him, there was (to be) no discussion, you know,” said Husni.

1MDB took a US$1 (RM4.4) billion loan from Deutsche Bank to buy a 40% share in the 1MDB-Petrosaudi joint venture (JV) project.

The 1MDB board had agreed for the money to be remitted in one tranche, the beneficiary being BSI bank.

Subsequently, however, US$300 million was remitted to the JV company, while US$700 million went to Good Star at RBS Coutts Bank.

Yesterday, a former employee of Deutsche Bank testified that 1MDB had urged the bank to expedite the transfer and to keep the identity of the beneficiaries concealed.

The JV turned out to be a sham and Good Star was found to be a company linked to fugitive financier Low Taek Jho, or Jho Low. – June 23, 2022.