NAJIB Razak pushed to secure a joint venture between 1Malaysia Development Bhd and PetroSaudi International at the end of September 2009, the Kuala Lumpur High Court heard today.

Former 1MDB chief executive Shahrol Azral Ibrahim Halmi told the court that he was pressured to close the deal by September 28, despite a clause that would result in a US$700 million (RM2.9 billion) debt for the entity.

During cross-examination by lead defence counsel Muhammad Shafee Abdullah, Shahrol said he was pressed by 1MDB intermediary Low Taek Jho, better known as Jho Low, and then executive director Casey Tang.

“At the time, I was under a lot of pressure to get the deal signed. Low and Tang both assured me that it was okay, and Low reiterated that the boss (Najib) really wanted to get this done.

“So, I made the decision to go with what I perceived to be instructions from Najib, and signed the agreement.

“I trusted that it would work out because Low was working out the details with Tang, with Najib’s full knowledge.”

He said he did not inform the 1MDB board of directors of the clause that would cause the entity to go into debt.

Former prime minister Najib is on trial on 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 to defraud the state investor.

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

Of the US$1 billion, US$300 million was wired to an account held by PetroSaudi Holdings (Cayman) Ltd under the name “JVCo”. The remaining US$700 million was remitted to an account owned by Good Star, a firm controlled by Low.

Prompted by Shafee on why he did not consult the board at a September 26, 2009 meeting, Shahrol said: “At the time, my perception was that it was not something out of the ordinary, and it had been part of negotiations that I wasn’t involved in.

“To answer your question on whether it was important enough to consult the board, I asked Tang whether it was okay to sign, and he said okay, and I trusted his advice, so I went ahead and did it.

“In a nutshell, I believed that was what Najib wanted. The difference between 1MDB and Najib did not exist in my mind. 1MDB was Najib, and Najib was 1MDB. Whatever he wanted done, I needed to get done.

“At the time, I was trying to reconcile what the board wanted, and what the (board of advisers) chairman, Najib, wanted.”

Najib is represented by a dozen lawyers. Former Federal Court justice Gopal Sri Ram leads the prosecution, while judge Collin Lawrence Sequerah presides. – October 24, 2019.