1MALAYSIA Development Bhd’s board of directors had sought advice from Najib Razak, who was then chairman of the advisory board, on whether the state investor should get involved in another joint venture with PetroSaudi International, a witness in the 1MDB trial said.

Former 1MDB CEO Shahrol Azral Ibrahim Halmi said the board wanted Najib’s views on whether US$1 billion funds should be injected into a joint venture company, which would purchase 4.23% stake in the French energy firm GDF Suez.

This was expressed by then board chairman Lodin Wok Kamaruddin in a meeting held on July 5, 2010, Sharol told the Kuala Lumpur High Court today.

The joint venture company, 1MDB-PetroSaudi International Ltd, was then 100% owned by PSI, the witness said.

Lodin had informed the board that purchasing the minority stake in GDF Suez would not result in immediate returns as the stake was held by PSI, Shahrol said.

“The board, at that time, just wanted to hear from Najib whether we should get into this project. The board made the decision to get the advice from him,” Shahrol said when cross examined by lead defence counsel Muhammad Shafee Abdullah today.

Shafee then suggested that, according to law, Najib could not have provided advice as the board of advisors is only allowed to act when at least four members meet.

“Didn’t you advise the board that the chairman of the advisors is not an entity,” Shafee asked.

Shahrol admitted that he did not advise the board on that point.

Shafee then said that the board had had a “jaundiced” view that Najib, as chairman of the board of advisors, could act as an entity.

Shahrol responded that the board sought Najib’s advice not merely as chairman of the board of advisors, but also as prime minister and finance minister, who was the sole shareholder as the head of the Minister of Finance Inc.

“The board at the time just wanted to hear from Najib whether this was something that we should do. The board of directors felt this was something that needed guidance from Najib,” the witness said.

1MDB’s advisory board comprised Najib, former minister Nor Mohamed Yakcop, former chief secretary to the government Ali Hamsa, former Petronas chairman Mohd Sidek Hassan and former finance ministry secretary-general Mohd Irwan Serigar Abdullah.

Also on the board were former Perbadanan Insurance Deposit Malaysia (PIDM) chairman Abdul Samad Alias, former Qatari prime minister Sheikh Hamad Jassim Jabr Al-Thani, Mubadala CEO Khaldoon Khalifa Al Mubarak and Citic Group of China president Chang Zhenming.  

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. He faces up to 20 years imprisonment upon conviction. – November 5, 2019.