GOOD Star Ltd paid PetroSaudi International CEO’s Tarek Obaid US$85 million (RM255 million then) on October 5, 2009, just days after the shell company received US$700 million from 1MDB, according to documents tendered at the high court today.

Former 1Malaysia Development Bhd CEO Shahrol Ibrahim Halmi verified documents, which showed the payment was made from Good Star’s account at RBS Coutts to Tarek’s account at JP Morgan.

Documents further showed that two weeks later on October 20, US$33 million was transferred from Tarek’s account to his associate, PetroSaudi director Patrick Mahoney, said the witness who was cross-examined today by lead defence counsel Muhammad Shafee Abdullah in the 1MDB trial of former prime minister Najib Razak.

Shafee: Tarek made the payment to Patrick Mahoney. US$85 million. He shared it with Patrick Mahoney.

Shahrol: Yes.

Shafee: Christmas came a bit early that year?

Shahrol nodded.

Five days after the US$1 billion joint venture deal was signed between 1MDB and PetroSaudi International on September 25, US$300 million was paid to PetroSaudi Holdings (Cayman) Ltd and US$700 million to Good Star Ltd without the approval of the board.

Investigators later revealed them to be sham companies, with Good Star Ltd controlled by fugitive financier Low Taek Jho, commonly known as Jho Low.

Prosecutors have accused Najib of conspiring with Penang-born Low to defraud the state investor.

Najib, 66, 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.

During cross-examination this afternoon, Shahrol, 49, said he was not aware then that the US$700 million went to Good Star, much less did he know of the sum paid to Tarek.

Shafee: Can this be a bona fide commission or is it outright stealing?

Shahrol: There’s not enough information to tell.

Shafee: What sort of commission was this, that someone could make US$85 million?

Shahrol: It was for him getting US$2.5 billion for the joint venture; US$1 billion from 1MDB and US$1.5 billion from PSI.

Shafee: This is slightly more than 10% for commission.

Shahrol: Yes.

The witness told the court that he first learnt of the 1MDB fraud from the Malaysian Anti-Corruption Commission last year.

Najib is represented by a dozen lawyers. Former Federal Court judge Gopal Sri Ram is leading the prosecution before judge Collin Lawrence Sequerah. – October 30, 2019.