FORMER 1Malaysia Development Bhd CEO Shahrol Azral Ibrahim Halim denies colluding with fugitive financier Low Taek Jho and former Goldman Sachs executive Tim Leissner in the RM10.6 billion acquisition of Tanjong Energy Holdings Ltd.

The ninth prosecution witness at Najib Razak’s 1MDB trial also denied conspiring with the duo and other executives to set the recommended bid price for the independent power producer from tycoon T. Ananda Krishnan in early 2012.

When cross-examined by defence counsel Wan Aizuddin Wan Mohammed, Shahrol, 50, said he was not aware if the investment bank had artificially hiked the bid value to earn higher fees.

Shahrol also denies colluding with Penang-born Low, commonly known as Jho Low, who was then a central 1MDB figure.

Wan Aizuddin: I put it to you that you had colluded with Jho Low in making this deal happen with the promise of remuneration from Jho Low.

Shahrol: I disagree.

Wan Aizuddin: I further put it to you that Jho Low was in communication with you, pertaining to this deal, and had instructed you to delete all correspondence between you and him.

Shahrol: He instructed me to delete correspondence many times, but I cannot remember this particular instance.

The defence also sought to establish that Leissner, a known Low associate, had schemed so that 1MDB would agree with the RM10.6 billion purchase.

The witness denied any knowledge of such conspiracy or any history between Leissner and Ananda.

1MDB was then owned by Minister of Finance (MoF) Inc, which was headed by Najib. The former prime minister also served as chairman of 1MDB’s advisory board.

The 66-year-old 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’ prison upon conviction.

As financial adviser, Goldman earned 0.5% of the price paid on a success basis. The defence referred to minutes of a 1MDB board meeting held on February 8, 2012, where Leissner briefed the board. 

Also present were former 1MDB chief financial officer Vincent Koh and former 1MDB general counsel Jasmine Loo, who Shahrol also denied conspiring with.  

Wan Aizuddin questioned Shahrol on what he knew of Low’s role in 1MDB appointing Goldman Sachs as the financial adviser for the purchase.

Wan Aizuddin: It was also Jho Low who suggested that Goldman act as the underwriter and arranger.

Shahrol: Jho Low just told me, “Why don’t we get Goldman to do everything relating to the funding?”

Wan Aizuddin: You would agree that by Jho Low’s act of appointing Goldman Sachs, he behaved like a broker… almost.

Shahrol: I didn’t see it at the time. I see it more that he is in touch with all the key stakeholders, including Datuk Seri Najib, and Goldman has always been in the picture as far as 1MDB is concerned. I didn’t see Jho’s role as a broker.

Wan Aizuddin: But we are not talking about stakeholders. We are talking about Goldman Sachs’ appointment as financial adviser and so on. With the benefit of hindsight, it would appear he was acting as broker for Goldman Sachs?

Shahrol: With hindsight, I cannot say for sure. I don’t think so.

Wan Aizuddin: But now we know Jho Low was acting in conspiracy with Goldman in relation to his appointment with 1MDB with the indictment of Roger Ng by the (US Department of Justice).

Shahrol: I am not familiar with the indictment so i cannot comment on this.

Wan Aizuddin: Since the beginning, you were told that Jho Low’s involvement must be kept off the radar in order to protect Datuk Seri Najib. And you followed this?

Shahrol: I did.
 
Shahrol testified last year that in early 2012, Najib signed approval letters for a RM6.17 billion bridging loan and a US$1.75 billion (then RM5.23 billion) bond issuance to fund the acquisition of the independent power producer.

The witness had said the RM6.17 billion was a syndicated bridging loan between 1MDB, and Maybank Bhd and RHB Bhd.

Separately, Goldman Sachs was appointed the bookrunner and arranger for the issuance of US$1.75 billion in 10-year bonds.

Shahrol had told the court that it would not have been possible for either the loan or the bonds issuance to proceed without approval from Najib, in his capacity as finance minister.

The approval letters were handled by Loo, who obtained Najib’s signatures. – July 15, 2020.