THE prosecution’s ninth witness, former 1Malaysia Development Berhad (1MDB) CEO Shahrol Azral Ibrahim Halmi, returns to the stand as former prime minister Najib Razak’s trial enters its 24th day today.

Shahrol will be cross-examined by lead defence counsel Muhammad Shafee Abullah for the seventh consecutive day of the 1MDB trial at the Kuala Lumpur High Court.

Yesterday, he testified it was the personal relationship between Najib and the late Saudi ruler King Abdullah that led to a failed joint venture between 1MDB and PetroSaudi International in 2009.

The witness said he was confident there would not be any hiccups as it was to be a government-to-government deal. 

In the joint venture worth US$2.5 billion (RM10.5 billion), 1MDB was to inject capital of US$1 billion in cash for a 40% stake.

Of the US$1 billion, 1MDB was supposed to inject into the joint venture company, US$300 million was wired to JP Morgan (Suisse) SA, which held a joint bank account 1MDB opened with PetroSaudi Holdings (Cayman) Limited under the name of JVCo.

The remaining US$700 million was remitted to an account owned by Good Star, a company allegedly controlled by fugitive businessman Low Taek Jho.

Shahrol said he signed the deal based on assurances by former 1MDB business development executive director Casey Tang that PetroSaudi Holdings (Cayman) Ltd was a proper company.

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.

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 judge Collin Lawrence Sequerah.

The Malaysian Insight brings you today’s proceedings live:

3.29pm: Shafee is asking the witness about the function of the board of directors and who called the shots in 1MDB.

3.25pm: Shafee: You just made the prime minister the emperor of 1MDB, like the emperor of India. No checks and balance. 

Shahrol: I have to say he was.

3.24pm: Shafee said, based on the provisions and company law, the board of directors make decisions. 

Shahrol: I would say that it didn’t work that way in 1MDB.

3.20pm: Shahrol said that former PM Najib was the ultimate power in 1MDB.

Shafee said this is true, but the board must make a decision first, then the PM can overrule.

Shahrol said it didn’t work that way in 1MDB.

Shafee asked him if the board should make the decision first.

Shahrol said: “No comment.”

2.42pm: Shahrol says that he was not appointed by Najib as the CEO of 1MDB.

Shafee: Your appointment needs to be approved by the prime minister. There is a flaw about your appointment as CEO. 

Shahrol: The explanation is: I was still CEO of TIA and when it changed they retained me as CEO of 1MDB.

2.41pm: Court is in session. Shahrol takes the stand.

12.40pm: Court is in recess.

12.17pm: Shafee now refers a letter that Shahrol sent on December 22, 2010, to Najib in his capacity as finance minister.

Shahrol says the content was given by Low for Najib to endorse it as the finance minister.

This is under article 117 of the memorandum and articles of association for 1MDB.

11.08am: Court is in session.

10.15am: Court takes a short break as Shafee tells Sequerah that his team had left a box of documents either in the car or at their office.

Sequerah allows it and requests that Shafee sees him in his chambers.

9.59am: Shafee is walking Shahrol through the hiring process of Casey Tang as 1MDB executive director.

Shafee suggests that the board of directors of 1MDB were given ultimate power to run the business despite there being shareholders in the company.

9.38am: Court is in session with Shahrol on the stand. – October 17, 2019.