KUALA Lumpur High Court today heard that two shell companies supposedly siphoned some US$1.83 billion (RM5.5 billion) from scandal-hit 1Malaysia Development Berhad (1MDB) between 2009 and 2011 were dissolved almost four years after receiving the funds.

Taking the stand today, Labuan Financial Service Authority legal policy adviser Mohamed Fairudz Hanif, told the court that – based on information obtained from Seychelles Financial Service Authority (Seychelles FSA), Good Star Limited was dissolved on May 2, 2014, while PetroSaudi International Ltd (PSI) was dissolved on April 8, 2015.

The prosecution’s 28th witness said he had obtained the details from Seychelles FSA after it was requested by the Malaysian Anti-Corruption Commission (MACC) on July 16, 2018, which was representing the Malaysian government.

“The application was made on behalf of the Malaysian government in line with the request made by the MACC.

“The email by the MACC requested LFSA’s assistance in obtaining information from coastal countries for the 1MDB case. Those countries were the British Virgin Islands, Seychelles, Caracao and Cayman Island,” the witness said while reading his statement.

He said, among others, MACC in particular wanted details on Good Star Limited and PSI.

It was earlier revealed by investigators that Good Star Limited was controlled by fugitive businessman Low Taek Jho, better known as Jho Low, while Saudi national Tarek Obaid was the owner of PSI.

Fairudz said he had then sent the email as requested by the MACC to Seychelles FSA’s chief executive officer and also the supervision manager on August 10, 2018.

The witness said he received two subsequent replies for the email, from Yves Finesse, a supervision manager from Seychelles FSA.

“On August 13, 2018, I received an email from Yves Finesse, acknowledging she received an email from LFSA.

“Then on September 10, 2018, she provided details of 1MDB-linked companies registered with Seychelles FSA,” he said.

According to Fairudz, the reply from Finesse showed that both Good Star Limited and PSI were registered under the same business address.

He also confirmed based on the documents obtained that both companies used the same registration agent: Vistra (Seychelles) Limited, previously known as Offshore Incorporation (Seychelles) Limited.

Earlier during the trial, the ninth prosecution witness, former 1MDB CEO, Sharol Azral Ibrahim Halmi told the court that nobody on the state-owned 1MDB board attempted to verify the ownership of Good Star Limited after US$700 million was transferred into its account, instead of its purported parent PSI.

He also said that the total amount of funds injected by 1MDB into PSI and Good Star Limited was US$1.83 billion.

The transactions included US$300 million to 1MDB-PetroSaudi Ltd and US$700 million to Good Star Ltd on September 30, 2009, purportedly as cash capital for a 40% stake in a joint venture with PetroSaudi International.

On September 14, 2010, 1MDB paid US$500 million to 1MDB-PetroSaudi Ltd under a Murabaha financing agreement.

Finally, between May 20, 2011, and October 25, 2011, US$330 million in four payments was transferred from 1MDB to Good Star Limited, Shahrol had testified in court.

Former 1MDB director Ismee Ismail, the trial’s 13th prosecution witness, also testified in court, claiming the board was not aware that the funds were transferred to a company owned by Jho Low.

The trial’s 15th prosecution witness, former 1MDB chairman Mohd Bakke Salleh, also testified in court earlier, saying he had suspected that the 1MDB management had bypassed the board and listened to instructions from a “higher level”, namely former prime minister Najib Razak and Jho Low, which led to the immediate siphoning of US$700 million to Good Star Limited.

Bakke eventually resigned in October 2009, stating his reason for resignation was because Shahrol and the 1MDB management did not obey instructions the board had given them regarding several matters.

Najib, 68, is standing trial for corruption over the misappropriation of RM2.28 billion of 1MDB funds.

He faces 25 charges: four for abuse of power and a further 21 for money laundering. – June 16, 2022.