THE prosecution’s ninth witness, former 1Malaysia Development Bhd (1MDB) CEO Shahrol Azral Ibrahim Halmi returns to the witness stand today as the Najib Razak trial enters its 21st day.

Shahrol will be cross-examined by lead defence counsel Muhammad Shafee Abullah for the fifth day.

On Thursday, Shahrol told the High Court that fugitive financier Low Taek Jho acted as “consigliere” to Najib.

“Consigliere” – term a popularised by the film The Godfather – is Sicilian for adviser or counsellor to a Mafia boss.

Shahrol said it was on Low’s recommendation that Najib approved the appointment of French business tycoon Bernard Arnault to the international board of advisers of Terengganu Investment Authority (TIA), the precursor to 1MDB.

Arnault is CEO of luxury goods firm LVMH Moet Hennessy.

Low also recommended the board appointments of Mubadala Development Company CEO Khaldoon Khalifa Al-Mubarak, former ExxonMobil CEO Lee Raymond, former General Electric CEO Jeffrey Immelt and former Walt Disney CEO Michael Eisner.

c additions to the board were Khaldoon, Arnault, CITIC Group chairman Chang Zhenming and former Qatari prime minister Hamad Jassim Jaber Al Thani.

Shahrol also testified that AmBank in 2009 never told the Terengganu Investment Authority board or Najib that it was involved in bond flipping that allegedly made companies linked to Low millions of ringgit.

This was in relation to a bond sale by TIA in May 2009 which sought to raise RM5 billion to develop Pulau Bidong in Terengganu.

Najib, 66, 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 four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB and 21 charges of laundering the same amount.

Prosecutors have accused him of conspiring with the Penang-born Low, who is on the run, to defraud the state investor.

Najib is represented by a dozen lawyers led by Shafee.

Former Federal Court judge Gopal Sri Ram is leading the prosecution before Kuala Lumpur High Court judge Collin Lawrence Sequerah.

The Malaysian Insights brings you today’s proceedings live:

5.05pm: Court is adjourned.

5.02pm: Shafee concludes cross-examination for today.

He tells the court the accused has to attend question time in parliament. Shafee also asks for tomorrow’s hearing to start late at 2.30pm because his presence is required in another court.

Judge Sequerah allows both requests. 

4.39pm: Shafee accuses the witness of trying to hide the true state of 1MDB’s finances by opposing the audit and that the witness was in “cahoots” with Low.

Shahrol disagrees.

4.28pm: Shafee accuses Shahrol of following Low’s instructions “blindly”.

The witness says that he obeyed the instructions to oppose the audit because Low represented Najib, the sole shareholder of 1MDB.

4.14pm: The witness agrees with a suggestion that the auditor-general and 1MDB were in disagreement over the audit requirements.

4.08pm: Shafee refers to a letter from 1MDB to the auditor-general.

The lawyer says Shahrol sent the letter to the audit department. The auditor-general responded on August 25, 2010, that the entity must be audited to check that every item was bought at fair value and to calculate the liabilities the government might be responsible for.

 The response was cc’d to the Treasury secretary-general.

3.45pm: Court takes a recess.

3.27pm: Shahrol: This was already played up as an issue by the opposition at the time. So, I believe Jho (Low) when he said restricting the audit served to protect the political interest of the prime minister.

3.25pm: Shahrol: No. What Jho Low said was consistent with the actions of Datuk Seri Najib’s and never even once after the fact, was I told by Datuk Seri Najib that I shouldn’t have done something.

Shafee asks if Shahrol suspected there was any illicit activities in 1MDB, due to Low’s request that no government audit be carried out.

Shahrol says the reasoning was that 1MDB received only RM4.3 billion out of the RM5 billion bonds.

3.22pm: Shafee asks Shahrol if he sent phone messages to Najib.

Shahrol says he texted Najib to wish him on his birthdays and on festive occasions.

Shafee says he can bring up Najib’s current phone to show that Shahrol had been in “messaging mode” when Shahrol was 1MDB CEO.

Shahrol: Go ahead. I am innocent.

Shafee asks if the witness was “foolish” to have followed Low’s instructions.

3.02pm: Shafee says on the side Najib wrote that he agreed for the government to carry out the audit and due diligence process to determine the consideration price of 1MDB.

2.59pm: The letter says due diligence was a necessary requirement and would prevent a negative perception of the government and its use of taxpayers funds.

2.54pm: Shafee now refers to a letter dated June 7, 2010, which is a memo from Wan Abdul Aziz to Najib and then second finance minister Ahmad Husni Hanadzlah.

The letter referred to the audit and due diligence process by the National Audit Department.

Shafee says a government audit went ahead anyway, despite the 1MDB board of advisors saying there was no requirements.

2.43pm: Shahrol says he does not have proof that the letter to Najib was ever received.

The letter was about having no requirements for auditing or due diligence to be undertaken by the auditor-general.

2.37pm: This is after Shahrol says Low’s “talking points” were deleted in 2015, after Low that year instructed emails related to 1MDB be deleted.

2.34pm: Shafee says there is no other evidence to support what Shahrol is saying.

“We are totally at the mercy of you saying it verbally, without any other contemporaneous document to support you are saying,” says Shafee.

2.25pm: Shahrol says he was briefed on the “talking points” of the board of advisors by Low.

He says the board might not necessarily agree to a decision.

Shahrol says he was told by Low that the board’s decision was already made in a prior meeting between Najib and Wan Abdul Aziz.

2.17pm: Shahrol confirms the board of advisors was chaired by Najib and that the board comprised then Treasury secretary-general Wan Abdul Aziz Wan Abdullah, former chief secretary to the government Sidek Hassan and Economic Planning Unit head Nor Mohamed Yakcop.

2.15pm: In the letter, Shahrol sought to confirm the decision and direction on the board of advisors on the federalisation process of TIA.

He also informed Najib that 1MDB board of directors has appointed Ernst & Young as its auditors.

2.12pm: Shafee refers to a 1MDB letter, written by Sahrol and addressed to Najib.

The letter was written to Najib in his capacity as prime minister and finance minister.

The letter was sent in December 2009.

2.10pm: Court is in session.

Sri Ram apologises to the court for his time away at another court this morning.

Shahrol takes the stand.

Shafee continues his cross-examination. – October 14, 2019.