FORMER prime minister Najib Razak had approved Mohd Hazem Abdul Rahman’s appointment as 1Malaysia Development Berhad (1MDB) executive director, who had gone on to replace Shahrol Azral Ibrahim Halmi as CEO, the Kuala Lumpur high Court heard today.

Shahrol said this during the cross-examination by Najib’s lawyer Wan Aizuddin Wan Mohamad, in the graft trial.

He also said Najib had acted on the advice of fugitive businessman Low Taek Jho or Jho Low, who pushed for Hazem’s appointment in March 2013.

Wan Aizuddin: Before we proceed, who nominated Hazem to be appointed as 1MDB CEO?

Shahrol: His name came to me via Jho Low. He passed me a CV. He mentioned it was recommended by Azlin.

Shahrol was referring to the late Azlin Alias, Najib’s former principal private secretary and the director of economics in the Prime Minister’s Office, which oversaw 1MDB matters.

Shahrol added that when the CV was passed to him, it included a “notation” from Najib suggesting Hazem be appointed as 1MDB executive director.

“The CV included a notation by Najib that stated ‘Hazem is to be appointed as executive director’. I clarified that there was no executive director’s role and proposed the position of chief operating officer.

“When Hazem came in, he was first made the COO, I made him responsible for real estate matters and I focused on energy assets,” Shahrol said.

Wan Aizuddin: His appointment, was it endorsed by the board of directors?

Shahrol: We did discuss Hazem’s appointment and there was a letter from Najib to approve the appointment.

Wan Aizuddin once again pressed Shahrol if he had misled the Malaysian government to appoint Hazem to continue embezzling money from 1MDB.

“Disagree, I have no knowledge of this,” Shahrol said.

Shahrol was 1MDB CEO from 2009 to March 2013 and was replaced by Hazem who served from March 2013 to January 2015.

Shahrol was then transferred to the government’s Performance Management and Delivery Unit (Pemandu) that he said caught him off guard.

Hazem went on to replace Shahrol as 1MDB CEO and oversaw the dealings between 1MDB and Aabar Investments PJS Limited (Aabar BVI) relating to the Tun Razak Exchange.

Hazem was also involved in raising the US$3 billion bonds needed to finance the project.

It later emerged that Aabar BVI was a shell company registered in the British Virgin Islands and controlled by Low, and not the subsidiary of International Petroleum Investment Company (Ipic).

Shahrol is the ninth prosecution witness in Najib’s trial and has been on the stand since September. Hazem will be the next witness to take the stand.

Najib, 67, 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’ jail upon conviction.

Prosecutors have accused him of conspiring with Low to defraud the state investor.

Judge Collin Lawrence Sequerah is presiding over the case and the trial is set to continue on August 17. – August 6, 2020.