THE prosecution’s ninth witness, former 1Malaysia Development Berhad CEO Shahrol Azral Ibrahim Halmi, returns to the stand as former prime minister Najib Razak’s trial enters its 26th day today.

Lead defence counsel Muhammad Shafee Abdullah will cross-examine Shahrol in the 1MDB trial at the High Court in Kuala Lumpur.

On Monday, the witness testified he was told some time in 2011 or 2012 by Najib to speak to fugitive businessman Low Taek Jho about retrieving US$1 billion following a failed joint venture deal with PetroSaudi International (PSI).

The joint venture agreement between 1MDB and PetroSaudi International was to invest in the energy sector in South America and other locations. It was signed on September 25, 2009.

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

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

Prosecutors have accused Najib of conspiring with Low, commonly known as Jho Low, to defraud the state investor.

The Malaysian Insight brings you today’s proceedings live:

4.07pm: Court resumes. Shafee is done with his cross-examination for the day, he tells Justice Sequerah that he may finish with Shahrol next week.

Court will resume on Tuesday, October 29.

3.47pm: Shahrol is asked if he’s still a director in 1MDB, he said he hasn’t been a director since 2016.

Court takes a short recess.

3.46pm: Shafee tells Shahrol The Edge paid US$2 million to Xavier Justo to get information about 1MDB.

Shahrol says that he did not know about this report.

3.07pm: Shahrol said when he found out that PSI didn’t own its assets he brought it to the 1MDB board, but none of them did anything. He said that Lodin was the chairman of the board along with Ismee, who was part of the board.

3.06pm: Shafee: You agree with me that internet search was not enough to determine PSI ownership? Couldn’t you tell Jho Low or Casey to give you documents? To what extent did you ask to determine owner ship? 

Shahrol: I can’t remember. 

Shafee: You know finally that more than 90% of the property of PSI is from Turkmenistan? . 

Shahrol: The majority was in Turkmenistan. 

Shafee: Did you learn that PSI’s properties were owned by Turkmenistan. 

Shahrol: I think I found out in the media. 

Shafee: How come you as the CEO couldn’t find out, but media like The Edge found out?

3.01pm: Shafee: You trusted Casey enough to place that US$1 billion investment in PSI and put it at risk? 

Shahrol: Yes.

2.59pm: Shahrol said Casey Tang’s team had merely done an internet search on PSI before going into the joint venture.

Shafee: Were you happy with the search? 

Shahrol: Yes.

2.58pm: Shafee asks him about the evaluators who did not want to report to 1MDB about the ownership of Petrosaudi.

Shahrol said that it was not part of the scope of their work.

2.54pm: Shahrol testifies that no one from 1MDB had done any search or any research on Petrosaudi. He said that because the nature of the deal was rushed, so they had just trusted Petrosaudi.

2.43pm: Shahrol says he has not kept in contact with Tarek Obaid or any other associates.

2.40pm: Court is in session. Shahrol takes the stand.

12.40pm: Shafee suggests to the witness that he didn’t have fiduciary duty to the company. Shahrol disagrees.

After this exchange, Shafee asks Justice Sequerah if they can break for lunch. The judge allows it. Court will resume at 2.30pm.

12.35pm: Shahrol says Najib wanted 1MDB to work swiftly and leave the old ways behind. 

He recalls Najib had also said “I’m not out to destroy the country” in a meeting with senior Finance Ministry officials.

Shahrol says, open hearing that, all his decisions as CEO were based upon that trust.

Shafee asks him if he abetted Low. Shahrol says he was acting on instructions, to which the defence lawyer says it means he was abetting the businessman.

12.10pm: Shahrol says he doesn’t know if Tarek Obaid was responsible for the incorporation of the JV between 1MDB and Petro Saudi.

11.55am: Shahrol says board meeting discussions on Edward Morse’s valuation were very heated. Shafee asks him why did he not intervene. Shahrol says he didn’t want to, to which Shafee says he seems to always be playing second fiddle even though he was the CEO.

“You are always playing second fiddle in your role. You said that you make decisions in your role as CEO, but you are always seen as playing second fiddle,” he said.

Shahrol says he had to bulldoze the deal through. He had to reconcile what Najib wanted and what the board had decided so that the JV would go through fast as per the former prime minister’s instructions.

11.45am: Court is back in session and Shafee begins his cross-examination.

Shafee asks Shahrol about Edward Morse, who was brought in to evaluate the joint venture.

Shahrol says Morse was brought in because he had worked with PetroSaudi before.

He says they had vetted four other valuers before they settled on Edward Morse.

10.40am: Shafee and former Federal Court judge Gopal Sri Ram, who leads the prosecution, tell Sequerah that they have another case at another court.

Shafee says the matter will take about half an hour. Sequerah allows it.

Court takes a break.

10.07am: The cross-examination is on the joint venture between 1MDB and PetroSaudi.

Shahrol is asked to explain how he was briefed by Low on the details of the 2009 deal.

He says US$700 million in debt was created as a result of the joint venture.

9.41am: Court is in session. Shahrol takes the stand. Shafee begins his cross-examination.

Earlier, Shafee made an application before judge Collin Lawrence Sequerah to inspect evidence from former PetroSaudi executive Xaiver Andre Justo. Sequerah fixed October 31 for case management. – October 24, 2019.