NAJIB Razak wanted 1Malaysia Development Bhd’s acquisition of independent power producer Genting Sanyen Sdn Bhd completed before the 2013 general election, the Kuala Lumpur High Court heard today.

Former 1MDB chief executive Shahrol Azral Ibrahim Halmi testified that he was informed as such by intermediary figure Low Taek Jho, better known as Jho Low, in 2012.

Shahrol, during cross-examination by defence counsel Wan Aizuddin Wan Mohammed, said this was the reason there were no board meetings held in relation to the purchase.

He said Low had told him that former prime minister Najib wanted the acquisition expedited.

Wan Aizuddin: What was the reason you believed him (Low)?

Shahrol: I don’t remember exactly when, I think it was the latter half of 2012. Najib called the 12th or 13th elections that were eventually held in 2013, but at that time, there were all sorts of speculation that Parliament would be dissolved.

Low specifically told me that Najib wanted this to be done before Parliament was dissolved, as such a decision could not be carried out under a caretaker (government).

Wan Aizuddin: You have made serious allegations against my client.

Shahrol previously testified that Najib approved the process to buy Genting Sanyen in 2012 in his capacity as finance minister, representing Minister of Finance Inc (MoF Inc).

The acquisition process was dubbed “Project Greyhound” and involved 100% equity in Mastika Lagenda Sdn Bhd. State investor 1MDB requested the approval of Najib as both finance minister representing MoF Inc and shareholder owning all 1MDB units.

On August 3, 2012, Najib approved a loan facility not exceeding RM1 billion, as well as US$1.75 billion (RM5.25 billion then) in bonds, for the acquisition of Genting Sanyen, according to the evidence filed by prosecutors.

The issuance of the bonds was guaranteed by 1MDB and International Petroleum Investment Co, with Goldman Sachs as financial adviser and lawyer Jasmine Loo as representative of the 1MDB investment team.

On a 1MDB directors’ circular resolution dated August 10, 2012 and titled “proposed acquisition of Mastika Lagenda Sdn Bhd”, Shahrol said it was an approval of the acquisition of Mastika Lagenda, which had a 75% shareholding in Genting Sanyen Power Sdn Bhd, the owner of the Genting Sanyen Kuala Langat Power Station.

Prosecutors have said 1MDB’s acquisition of two independent power producers, namely Tanjong Energy Holdings Sdn Bhd and Mastika Lagenda, resulted in Najib obtaining RM90,899,927.28 as gratification. They also described the assets as being of dubious value.

Najib, who turns 67 next Thursday, is on trial on 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’ jail upon conviction. – July 16, 2020.