THE East Coast Rail Link (ECRL) was among several projects that were used to pay for the bailout of 1Malaysia Development Bhd’s (1MDB) debts, a witness told the Kuala Lumpur High Court today. 

Chinese funding into the project, the Multi-Product Pipeline and Trans-Sabah Gas Pipeline projects were discussed with China’s State-owned Assets Supervision and Administration Commission of the State Council (SASAC) in mid-2016. 

The companies were also mentioned in a document titled “Action Point: China-Malaysia Economic Programme” that was emailed by Low Taek Jho, said Najib Razak’s former special officer Amhari Efendi Nazaruddin.

The document was to be used as a talking point during discussions with SASAC, the witness said. 

The ECRL deal, then valued at US$13.1 billion (RM55.1 billion), was signed between the Malaysian government and the state-owned China Communications Construction Company Ltd in November 2016. 

The deal was criticised by Dr Mahathir Mohamad as being lopsided, with huge sums being borrowed from China and with Chinese firms taking the construction contracts.

The scope of the ECRL project has been greatly trimmed while the twin pipeline projects, then valued at RM9.41 billion, were scrapped after Pakatan Harapan swept into federal power last year. 

Amhari told the court that Low spoke in Mandarin and did much of the talking during discussions with SASAC in mid-2016. 

He added that the government-linked facilitator was told that Najib would like to bring in Chinese firms to invest in Malaysia via the purchase of debts of 1MDB and its former subsidiary, SRC International. 

“Najib offered Chinese-owned businesses investment in infrastructure projects while resolving 1MDB and SRC debts,” said Ahmari. 

Three other projects offered to SASAC were: developing Labuan as an offshore banking and tourism hub, a oil pipleline from Port Klang to Kuala Kedah, and a Kuala Lumpur-Bangkok high-speed railway. 

Najib is on trial for four counts of power abuse to enrich himself by RM2.3 billion and 21 counts of laundering the same amount.

The 66-year-old accused is represented by a dozen lawyers led by Muhammad Shafee Abdullah.

Gopal Sri Ram, a former Federal Court judge, leads the prosecution while Kuala Lumpur High Court judge Collin Lawrence Sequerah is the sitting judge. – September 4, 2019.