FORMER 1Malaysia Development Bhd (1MDB) CEO Shahrol Azral Ibrahim denied that he conspired with Low Taek Jho to stop a government audit of the state investor fund’s finances in 2009, the high court heard today.

Shahrol also denied suggestions by the defence that he did so to hide financial irregularities that came about as a result of the RM5 billion bonds issuance by 1MDB’s precursor in May of that year. 1MDB later only received proceeds amounting to RM4.3 billion.

Lead defence counsel Muhammad Shafee Abdullah today tendered letters, from between 2009 and 2010, signed by Shahrol, which sought to oppose an audit by the National Audit Department, led by then auditor-general Ambrin Buang.

Some letters were addressed to Najib Razak in his then capacities as prime minister, finance minister and sole shareholder of 1MDB as the head of the Minister of Finance (MoF) Inc.    

Shafee: Your attitude in all these letters showed that you are in cahoots with Low, that you are hiding the true state of affairs in 1MDB that would be discovered in an audit. This includes the US$700 million (RM2.9 billion) that eventually made its way to Good Star Ltd (allegedly controlled by Low).

I am putting it you you that you could not have blindly Low’s instructions, that you were in cahoots with him.

Shahrol: I disagree.

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.

During cross-examination this afternoon, Shafee referred a letter, dated June 22, 2010 by then Treasury secretary-general Wan Abdul Aziz Wan Abdullah to 1MDB, saying that Najib has agreed for due diligence and an audit to be carried out by the National Audit Department.

Days later, on June 25, Shahrol sent a letter to Najib, seeking the restriction of confidential information, which can only be released after the approval of 1MDB’s board of advisors, which was also chaired by Najib.

Shahrol said he wrote that letter based on Low’s instructions, whom the witness said was acting on behalf of Najib. The witness added that Low’s reasoning was that 1MDB received only RM4.3 billion out of the RM5 billion bonds.

“This was already played up as an issue by the opposition at the time. So I believed Low when he said that restricting the audit serves to protect the political interests of the prime minister,” he said.

Shafee: From all these documents that I have shown you – I have shown with contemporaneous documents and not oral evidence or hearsay – that the prime minister then was never the person who obstructed the due diligence and audit of 1MDB. I am putting it to you.

Shahrol: I have no comment on that.

Shafee: I am putting it to you that the prime minister has no interest to obstruct due diligence and the auditing of 1MDB.

Shahrol: I have no comment on that.

Shafee: The only interest is Low acting in tandem with some personnel in 1MDB, people with interest to ensure that the auditor-general never comes in to do auditing or due diligence beyond the period of July 2009.

Shahrol: I have no comment.

Shafee: The reason why they are so bent on not allowing the auditor-general is because it would uncover the cheating and misappropriation by Low and company.

Shahrol: I have no comment on that.

Shafee: It would also unravel the illegal payment of the US$700 million payment to Good Star.

Shahrol: I have no comment.

Shafee: In view of the crystal clear documents (that the defence tendered as evidence), which are all contemporaneous, it could show that you could not be so naive in believing Low all the time. There has to be a time when you realise this is going into treacherous waters.

Shahrol: I have no comment on that.

Shafee: I am further putting it to you that in this episode, and other episodes that you were not blind as a bat but you went with eyes fully open.

Shahrol: I have no comment on that.

Shafee: We’ll see.

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. – October 14, 2019.