THE 1Malaysia Development Bhd (1MDB) trial , where former prime minister Najib Razak faces 25 criminal charges in relation to RM2.28 billion in public funds, resumes today after a six-month hiatus.

Najib, 66, faces two other ongoing criminal trials – one on alleged tampering of the 1MDB audit report and another on SRC International, which will enter its submissions stage on June 1. 

Returning to the witness stand for the 34th hearing day of the trial this afternoon will be former 1MDB CEO Shahrol Azral Ibrahim Halmi.

The 49-year-old Shahrol, who is the ninth prosecution witness, was first called to testify on September 23, last year.

The Kuala Lumpur High Court adjourned the 1MDB trial on November 13, last year, after both Shahrol and lead defence counsel Muhammad Shafee Abdullah were given leave for illness.

Shahrol last testified on November 7, last year, where under cross-examination of the defence, he told the court that 1MDB, under the stewardship of Najib, transferred US$1.83 billion (RM5.5 billion) to entities later revealed by investigators to be sham companies.

The amount was transferred between September 2009 and October 2011 to companies controlled either by Low Taek Jho, or Jho Low, or his associate, PetroSaudi International CEO Tarek Obaid.

The transactions include US$300 million to 1MDB-PetroSaudi Ltd and US$700 million to Good Star Ltd on September 30, 2009, purportedly as cash capital for a 40% stake in a joint venture with PetroSaudi International.

Investigators later revealed that Good Star was controlled by Low while the joint-venture company was 100% controlled by PetroSaudi International.

On September 14, 2010, 1MDB also paid US$500 million to 1MDB-PetroSaudi Ltd under a Murabaha financing agreement.

Finally, between May 20, 2011 and October 25, 2011, four payments amounting to US$330 million were transferred from 1MDB to Good Star. The money was for PetroSaudi International Ltd under a Murabaha financing agreement, Shahrol said.

The prosecution has accused Low, Tarek and Najib of conspiring to defraud the state investor of billions of ringgit. Najib, then the finance minister, was the sole shareholder of 1MDB as head of Minister of Finance (MoF) Inc. He was also chairman of 1MDB’s advisory board.

Defence lawyers have said that Najib was not fully aware of 1MDB transactions and that he was misled by Low and others.

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. He faces up to 20 years imprisonment, if convicted.

Ad hoc prosecutor Gopal Sri Ram leads the prosecution before justice Mohd Nazlan Mohd Ghazali. – May 19, 2020.