1MALAYSIA Development Bhd’s former chief executive officer Shahrol Azral Ibrahim Halmi today testified that Najib Razak was not informed of any suspicions concerning a deal with Aabar Investments PJS Limited (Aabar BVI) over the Tun Razak Exchange (TRX) project.

Shahrol said he did not brief Najib or the Finance Ministry before the Pekan MP signed several documents inking the deal.

This was raised by defence lawyers today in Najib’s 1MDB trial involving RM2.3 billion, over which he faces four counts of abuse of power to enrich himself and 21 counts of money laundering.

Shahrol was cross-examined by lawyer Wan Aizuddin Wan Mohamad on TRX.

Aizuddin: But you, as the CEO, you did not brief anyone from MOF Inc or Najib as finance minister?

Shahrol: Yes, correct.

Aizuddin: Do you know whether this (document) was shown to Najib or not?

Shahrol: I have no direct knowledge.

Shahrol said Najib had never raised any complaints about the deal and went on to sign it.

Aizuddin: You never went to see Najib or clarify with him about the joint venture, but you took it that, because he had no comments, it was accepted?

Shahrol: I had many meetings with him after that but it was never raised by him or by me.

Shahrol said the joint venture would allow Aabar BVI to raise RM1.4 billion in funds and 1MDB would give it the development rights to implement the TRX project.

Najib signed the Directors’ Circular Resolution (DCR) and Special Rights Redeemable Preference (SRRP) documents in July 2012.

It later emerged that Aabar BVI was a shell company registered in the British Virgin Islands and controlled by fugitive financier Low Taek Jho, and not the actual subsidiary of International Petroleum Investment Company (IPIC), which should have received the funds.

The joint venture between Aabar and 1MDB did not materialise in the end but was used by the sovereign wealth fund to raise its third bond, which was arranged by Goldman Sachs, totalling US$3 billion.

The trial before high court judge Collin Lawrence Sequerah continues. – August 4, 2020.