THE Najib Razak trial over 1MDB funds enters its 12th day today with the ninth prosecution witness, former Terengganu Investment Authority CEO Shahrol Azral Ibrahim Halmi returning to the stand.

Yesterday, Shahrol testified that fugitive financier Low Taek Jho had direct access to Najib and was known to call the then prime minister for his views during TIA board meetings.

The witness also told the Kuala Lumpur High Court that the accused had given Low, commonly known as Jho Low, the mandate to carry out plans on TIA, which later became 1Malaysia Development Bhd. 

Najib is on trial for four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount. He faces up to 20 years in prison if convicted.

Shahrol said TIA had chosen to work with Ambank Islamic in April 2009 to raise RM5 billion through Islamic medium term notes, which was to be government guaranteed. The sum was to fund a joint venture with Abu Dhabi sovereign wealth fund Mubadala to invest in a luxury hotel project in Pulau Bidong, Terengganu.

Shahrol was appointed TIA CEO on March 23, 2009. The company was renamed 1MDB on July 31, 2009, about four months after Najib became prime minister. 

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

Former Federal Court judge Gopal Sri Ram leads the prosecution while Kuala Lumpur High Court judge Collin Lawrence Sequerah presides.

The Malaysian Insight brings you today’s proceedings live: 

4.27pm: Shahrol continues giving evidence.

Shahrol: Najib was the ultimate decision maker. He has the ultimate power to make every decision.

He has the power to appoint the board and advisers.

I would also seek advice from Jho Low for any urgent matters. He was the unofficial adviser for TIA and 1MDB.

Najib can also sack the CEO, CFO and the CIO in line with article 117 M&A.

Court adjourns to 9.30am tomorrow.

4.17pm: Shahrol talked about his experience as 1MDB CEO from 2009 to 2013.

Shahrol: Jho Low would always tell me that every action was with the blessing of Najib, because he carries the mandate under the article 117 M&A for us to perform our duty. Our work as put by Jho Low himself was “work in silo” (gerak kerja berlapis) and we were only at the pelaksana (execution) stage.

Any order or action from Jho Low was made in the agreement with Najib. All of the talking points or action plan was consistent with what Najib wanted. I am confident that Jho Low was the ochestrator for Najib Razak in running 1MDB, because every time I double checked with Najib on Jho Low’s instruction, he would confirm it. 

Sri Ram: You say here when you checked with the accused, he always confirmed Jho Low’s instruction.

Shahrol: Yes

Sri Ram: How frequently did you check with him?

Shahrol: More frequently in 2009 than afterwards, because I was new in 2009 and was unsure of the working process. I did not want to make a mistake.

As time passed by, it happened less and less frequently. Less direct for example, when we were acquiring a power plant in 2012, I didn’t ask Najib whether we should do so.

3.07pm: Shahrol is asked about the murabahah purchase between TIA and AmInvestment Bank on May 26, 2009.

He says he was not told who bought the bond on a discount.

Sri Ram: Did you discover who the purchaser was later on?

Shahrol: Yes. During the investigation in 2018, the police showed me money transaction of the bonds. Two entities who bought at a discount. One was in Singapore and one in Hong Kong.

I cannot recall their names. They resold the bond at face value back to entities in Malaysia.

Sri Ram: Did the police told u which were the two entities?

Shahrol: The police told me the two entities belong to Low.

2.50pm: Court resumes.

Shahrol reads his witness statement.

12.50pm: Court goes for a lunch break.

12.48pm:  Shahrol says Low had deposited RM70,000 into his acount for TIA to increase share capital.

He says the money was then reimbursed by TIA, where he told Low, “I have your money back”, to which Low replied, “later, later”.

Shahrol says he later used the money to sponsor orphans to watch Upin and Ipin The Musical at Istana Budaya.

12.41pm: Sri Ram: Why was the government guarantee letter prepared by private firm?

Shahrol: It is faster.

Sri Ram: Can you described the pace of how TIA was working at that time?

Shahrol: Pace of urgency was frantic and we needed to prove something to the stakehders that we can be trusted to deliver.

12.36pm: Sri Ram asks the witness about letters that he signed.

Witness then reads his statement.

11.55am: Sri Ram submits that the witnesses’ actions on Low’s instructions and the accused’s conduct and state of mind at the time are all relevant.

He wraps up submission.

11.34am: Gopal Sri Ram for the prosecution is up next.

He says Low’s conversations with the witnesses are crucial to show whether or not he misled the accused as the defence claims.

“In that context what Low told the witnesses is critical. What Low said influenced how the witnesses acted. How these witnesses acted and interacted with the accused and how the accused interacted with Low and the witness are important.”

11.04am: Court is in recess.

11.03am:  Shafee refers to the previous witness Amhari’s description of Low as a master manipulator.

Shafee: He (Low) could still be manipulating… this witness and the true situation at TIA and 1MDB. Why should we take anything that a witness says that Low said as the truth?

The lawyer concludes his submission.

10.38am: Shafee says Shahrol has quoted Low to “save himself” while Low is not available for cross-examination on the witness stand.

“Low is not here… he’s not around to prove it.

10.08am: Shafee cites legal precedent to support his argument

10.03am: Defence lawyer Shafee argues that some of the witness Shahrol’s statements about Low are hearsay and cannot be corroborated. He says these statements cannot be admitted as evidence.

10.01am: Court is in session.