FORMER prime minister Najib Razak had offered the East Coast Rail Link (ECRL), Multi-Product Pipeline (MPM) and the Trans-Sabah Gas Pipeline (TSGP) to China as part of a deal to bail out debt-ridden 1Malaysia Development Berhad (1MDB) and its former subsidiary SRC International Sdn Bhd, the high court heard last week.

His former special officer Amhari Efendi Nazaruddin said he was told to go on a “secret mission” in June 2016 to meet, among others, representatives from China GLC facilitator State-owned Assets Supervision and Administration Commission of the State Council.

Also present at a series of meetings beginning June 28, 2016 was fugitive financier Low Taek Jho, who did much of the negotiations, Amhari said. 

Low had told representatives that Najib was offering China-owned businesses equity in infrastructure projects in exchange for resolving 1MDB and SRC International’s debt.

Three other projects also on offer were: developing Labuan as an offshore banking and tourism hub, Port Klang-Kuala Kedah oil pipeline, and a Kuala Lumpur-Bangkok high speed rail.

The meetings were to pave the way for a subsequent visit by Najib to China in November 2016, said Amhari.

The RM66 billion ECRL deal was signed between the ECRL Sdn Bhd and state-owned China Communications Construction Company Ltd on November 1, 2016.

A deal was signed between China Petroleum Pipeline Engineering Ltd with Suria Strategic Energy Resources Sdn Bhd for the MPM and TSGP projects.

Najib also witnessed funding agreements between Export-Import Bank of China and the project firms.

At one point of his testimony, Ahmari appeared emotional when speaking about being ordered by Najib to go on the secret assignment to China.

He said he was tasked with the job because Najib’s go-to aide, principal private secretary Azlin Alias, had died in 2015 in a helicopter crash.

Trouble at 1MDB was apparent by late 2014. In documents emailed to Amhari and Azlin, Low detailed a rationalisation plan to settle 1MDB’s debts.

“As 1MDB was in bad shape, the plan was to dispose all its assets, settle debts and shutter 1MDB,” Amhari said.

One proposal that the ownership of Bandar Malaysia Sdn Bhd be transferred to Sg Besi Development Sdn Bhd, a company that would be set up to acquire Bandar Malaysia, Amhari said.

As to Low’s influence, he said he was in awe of the Penang-born financier’s “charisma and extraordinary powers”, adding that it was immediately apparent Low was part of Najib’s inner circle.

Amhari, who became Najib’s special officer in 2008, said he first met Low, then in his mid-20s, in Penang in 2007.

Amhari was a special officer to the Economic Planning Unit under Mohd Effendi Norwawi. Amhari later introduced Low to Azlin the following year.

The witness spoke of Low’s easy access to Najib’s family and that he “frequently received phone calls” from the former prime minister’s wife Rosmah Mansor.

Amhari also learnt that Low knew Rosmah’s son, Riza Aziz, since they were in their teens.

Low would casually speak of travelling overseas with Najib’s family, and appeared to be in the know of future decisions by Najib. He would later serve as Najib’s “unofficial advisor”.

Amhari said there was concern in the Prime Minister’s Office (PMO) as by late 2014, negative media reports began linking issues at 1MDB to Najib.

“News reports on 1MDB were raging, and by the end of 2014, they were spreading via a few articles started by news portals like Sarawak Report and The Malaysian Insider.

“These portals exposed Jho Low’s luxurious lifestyle and his extraordinary spending habits, which was said to be financed by stolen 1MDB funds. The issue became a hot topic in Malaysia, which gave pressure to the entire PMO because it involved Datuk Seri Najib’s reputation and image.”

Later, reports linking Riza’s film company, Red Granite Pictures to 1MDB funds also began to emerge. 

“The New York Times, Wall Street Journal, and domestic news portals played up the issue with their evidence.

“As a result of these exposés, they caused an uproar at the PMO. The revelations were so shocking to everyone.”

By January or February 2015, Azlin became increasingly under stress, and on one occasion, slammed documents on the table, shouting “Duit 1MDB lah bro!” (It’s 1MDB money, bro!). Amhari described the Azlin’s outburst as out of character.

He said Low prepared “talking points” to fend off a criminal probe by authorities, including five support letters from various entities to proclaim the legitimacy of 1MDB’s US$2.5 billion (RM10.5 billion) joint venture with private oil company PetroSaudi International.

One document included a reference letter, allegedly from a Saudi commercial banking authority, addressed to PetroSaudi CEO Tarek Essam Ahmad Obaid.

By 2016, after Amhari went to China, the witness said he was ordered to go on another “secret mission”, this time to the Middle East in September 2016.

Najib had instructed Amhari to settle a loan dispute between 1MDB and International Petroleum Investment Co (Ipic) outside the International Arbitration Court.

The dispute was over a US$1.2 billion loan Ipic gave to 1MDB in May 2015.

After meeting Mubadala Investment Co’s CEO Khaldoon Khalifa Al Mubarak in Abu Dhabi, Amhari continued communications with Ipic lawyer Martin Edelman over a settlement deal that was eventually signed in mid-2017.

Low provided feedback throughout the process, the witness said.

Low had also constantly told Amhari and Azlin to destroy documents, especially those relating to PetroSaudi and Aabar Investments.

“Although Low had instructed me to destroy the documents due to concerns they may be leaked, they are still in my keeping,” the witness said.

During cross-examination, Najib’s lead lawyer Muhammad Shafee Abdullah accused Amhari of lying in his testimony to protect himself from prosecution.

Shafee further suggested Amhari was pressured by the Malaysian Anti-Corruption Commission (MACC) to lay the blame on Najib.

“I am putting it to you that your testimony in the last three days has been tailored and perhaps even coached by the MACC, in order to implicate my client because they threatened to prosecute you if you don’t agree to it,” Shafee said.

Amhari denied the suggestion.

It was revealed during cross-examination that Amhari received US$200,000 from Low to assist in buying a house in Kota Damansara.

Amhari told the court that the money was used to purchase a RM1.85 million house and that he intended to pay back Low after he sold another house, also in Kota Damansara.

The witness told the court that he owns four houses, two in Petaling Jaya and another two in Johor and had intended to purchase his fifth property, a RM3.8 million house in Damansara Heights.

Amhari said he worked as Najib’s special officer from 2008 to 2016, earning RM24,000 per month. Najib later allowed a request to be transferred to Khazanah Nasional, where Amhari was paid RM55,000 per month as a director.

Amhari also earned an additional RM20,000 as a shareholder in ORB Solutions Sdn Bhd, which managed Najib’s online image.

Amhari was made to leave in 2018, after Barisan Nasional was routed from power in the May 9 polls.

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 is represented by a dozen lawyers, led by Shafee.

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

The trial continues on Tuesday, with Amhari returning to the stand. – September 8, 2019.