NAJIB Razak told a former 1Malaysia Development Berhad (1MDB) CEO to speak to fugitive businessman Low Taek Jho when asked about the missing US$1 billion following a failed joint venture deal with PetroSaudi International, the high court heard today.

Former 1MDB CEO Shahrol Azral Ibrahim Halmi told the Kuala Lumpur High Court today he was forwarding the board of directors’ concerns about the missing money after the 2009 deal.

“There was one occasion. I can’t remember when exactly it was, in 2011 or 2012, when I had the opportunity to spend time with him at a CSR (corporate social responsibility) event and I asked Najib about the retrieval of US$1 billion.

“And his response was, ‘talk to Jho (Low)’,” Shahrol said when cross-examined by lead defence counsel Muhammad Shafee Abdullah.

The 66-year-old Najib 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 Najib of conspiring with Low, commonly known as Jho Low, to defraud the state investor.

During cross-examination today, Shahrol reiterated that a joint venture agreement between 1MDB and PetroSaudi International to invest in the energy sector in South America and other locations, was signed on September 25, 2009.

Shahrol testified that he signed on behalf of 1MDB along with his PetroSaudi counterpart Tarek Obaid. The duo signed it separately in their respective countries, he said. 

Shahrol told the court that despite being told to rush it through in anticipation of a state visit by the Saudi crown prince, who is to witness the signing ceremony, nothing of the sort happened.

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) Ltd under the name of JVCo.

The remaining US$700 million was remitted to an account owned by Good Star Ltd, which was represented as a PetroSaudi International subsidiary but was revealed later to be a company controlled by Low. 

Shahrol told the court that he acted in “good faith” despite taking instructions from Low, who was not a member of the board.

The 49-year-old witness maintained that he worked in a “silo” and was “discouraged from being a busybody”.

Shafee: The part of being made to work in a silo, did you ever attribute that to Datuk Seri Najib at that time?

Shahrol: At that time, I believed that the responsibly of managing the details of the joint venture was given to Low by Datuk Seri Najib. So, Datuk Seri Najib wouldn’t have to worry about the details. Low figures it out and gives us the action plans and talking points that would complete the task. This is what I said last week that he is very good at orchestrating.

Shafee asked whether the witness was aware if Najib knew of the details of the failed joint venture.

Shahrol: I cannot testify as to what Datuk Seri Najib knew or didn’t know but I reiterate that Low was delegated that responsibility.

Shafee: You did not pry open the details of what was going on?

Shahrol: I didn’t inquire what was beyond my silo.

Shafee: Were you prohibited from finding out the full details?

Shahrol: Not directly.

Shafee: I think you must have said to yourself, ‘I cannot sit here like a pretty boy. I am a CEO. I want to know the full gamut of the mechanism involved.’ Did you ever asked Jho Low?

Shahrol: I only asked in areas that I felt was in my silo. 

Shafee: You didn’t think this can add up to a disaster?

Shahrol: No.

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 trial continues. – October 21, 2019.