FORMER 1Malaysia Development Berhad (1MDB) CEO Shahrol Azral Ibrahim Halmi testified today that he was made a “scapegoat” by the Public Accounts Committee (PAC) for the financial troubles faced by the sovereign wealth fund.

In a 2016 report, the PAC had said Shahrol needed to take responsibility for “weaknesses and blunders” faced by 1MDB.

The report also recommended that enforcement agencies carry out further investigations against Shahrol and others in the 1MDB management team. 

“They were painting me to be a scapegoat,” the 49-year-old said during cross-examination at Najib Razak’s 1MDB trial today.

Shahrol said 1MDB had provided information to the Economic Planning Unit (EPU), which submitted it to PAC.

When cross-examined by lead defence counsel Muhammad Shafee Abdullah, Shahrol said his concern was that information provided would be “spun and taken out of context” as the PAC consisted of members of the government and opposition.

“My concern was that the 1MDB issue around the PSI (PetroSaudi International) investment has been in the news (would be used) as a political wedge against Datuk Seri Najib,” he said, adding that the PAC then consisted of some “very vocal critics” from the opposition camp.

Shahrol said he was concerned DAP lawmaker Tony Pua, who was in the committee, would leak the report and that 1MDB would become a matter of public record after the opposition got a hold of it.

“They would have picked and chosen what to give the media. We were cognisant of the fact that we have to comply but we’ve got to be careful as well.”

Shahrol denied a suggestion that he was concerned because the PAC report would expose that he was conspiring with Low Taek Jho – commonly known as Jho Low – and PSI director Patrick Mahony as well as 1MDB general counsel Jasmine Loo to defraud the sovereign wealth fund.

Shahrol also denied knowing then that former 1MDB independent director Ong Kim Huat was a long-time business partner of Low’s father Larry Low Hock Peng.

The witness said he did not conduct background checks as Najib had wanted Low on the board.

Najib was chairman of 1MDB’s advisory board and was empowered by the company’s articles of association to carry out appointments, the witness said.

Shahrol declined to comment on a suggestion the appointment was part of Low’s plan to control 1MDB.

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.

The trial, before Kuala Lumpur High Court judge Collin Lawrence Sequerah, resumes tomorrow. – May 20, 2020.