FORMER prime minister Najib Razak’s “fingerprints” were nowhere to be seen in the mishandling of billions of funds in relation to 1Malaysia Development Berhad (1MDB), based on documents shown by the defence, the prosecution’s 13th witness told the court today.

Former 1MDB director Ismee Ismail was responding to questions posed by defence lawyer Muhammad Shafee Abdullah after he took the latter through 1MDB’s termination of its joint-venture project with PetroSaudi International (PSI), which was eventually converted into murabaha notes and eventually six promissory notes purportedly worth US$2.3 billion (RM9.6 billion).

“Did you see somewhere the fingerprints of my client with what is being done the way the management purposely mishandled these funds?” Shafee asked Ismee.

The witness answered no.

“No, not with what you have shown,” Ismee said.

The sovereign wealth fund had initially pumped US$1 billion into a joint-venture project with PSI in 2009.

It subsequently terminated the joint venture and used the proceeds of US$2.2 billion to purchase a 49% equity in PetroSaudi Oil Services Ltd (PSOL).

From there, 1MDB sold its stake in PSOL to Bridge Partners International Investments, a Hong Kong-based firm in exchange for six promissory notes worth US$2.3 billion.

The promissory notes were subsequently invested in Bridge Global Absolute Return Fund SPC by 1MDB’s British Virgin Islands-incorporated special purpose vehicle Brazen Sky Ltd.

Brazen Sky, according to previous witnesses in the case, was set up to bring home to Malaysia investment funds from PSOL.

At Bridge Global Absolute Return Fund SPC, the Singapore branch of Swiss bank BSI Bank acted as the “fund manager” of the purported investment.

This, too, was a sham orchestrated by former BSI employees Yea Jiawei and Yak Yew Chee, who were associates of businessman Low Taek Jho or Jho Low.

It was later revealed during the trial that the six promissory notes were completely worthless and the entire transaction from murabaha notes to the promissory notes only took place on paper and a sham investment. 1MDB never saw a single sen in return of investment.

“Looking at it now, do you find that these six promissory notes that were issued to 1MDB, I cannot find for lack of better word, the management was trying to fool 1MDB?” Shafee said.

“Going and accepting a promissory note for billions from a nobody, it’s almost a joke.

“Shahrol Halmi (former CEO Shahrol Azral Ibrahim Halmi) and the management cannot be foolish enough to accept this and not put it to the board, bearing in mind their qualifications.”

When asked if the promissory notes were ever shown to the 1MDB board, Ismee said no.

The lawyer then put it to Ismee that the board never sought Najib’s approval pursuant to article 117 of 1MDB’s memorandum and article of association, which required the former prime minister’s approval for the promissory notes.

“Yes, they never went to the prime minister,” Ismee said.

Najib is standing trial for graft involving RM2.28 billion in 1MDB funds. He faces 25 charges – four for abuse of power and 21 for money laundering – for offences committed between 2011 and 2013.

The trial continues tomorrow. – April 4, 2022.