KUALA LUMPUR: The High Court here today was told that 1Malaysia Development Berhad Global Investments Limited (1MDB GIL) had issued US$3 billion (RM12 billion) in bonds with support from former prime minister Datuk Seri Najib Tun Razak (pix) to Abu Dhabi-Malaysia Investment Company (Admic) despite the company was not in operation.
Former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, 49, said after the issuance of US$3 billion (RM12 billion) in bonds by 1MDB GIL, there was no business done by Admic and no injection of funds into Admic as opposed to the original plan.
“Admic was initiated by Jho Low (fugitive businessman, Low Taek Jho) which was supposed to be the special purpose vehicle (SPV) for the Project Catalyze joint venture. Everything had been outlined in Jho Low’s planning plan to me through a confidential email. While Jasmine Loo (1MDB lawyer) would manage the establishment of Admic as per direction by Jho Low.
“Admic was not active and the plan was not implemented. I had to carry out Jho Low’s instructions because it was Datuk Seri Najib’s mandate and wish,” he said.
He also testified that the joint venture proposal between 1MDB and Aabar Investment PJS (Aabar) through Admic was not implemented as was tabled to the Ministry of Finance until it had received the fund amount of US$3 billion (RM12 billion).
Shahrol said the plan was Jho Low’s, but without the support of the Finance Minister who was Najib, the Letter of Support would not be issued and the fund would not have been obtained.
Shahrol in reference to a ‘Joint Venture Agreement Relating to Admic by Aabar and 1MDB’ dated Mar 12, 2013, said the document was an agreement regarding the establishment of Admic, an SPV company for the purpose of 1MDB’s joint venture with Aabar Investment PJS, which was signed on Mar 12, 2013, in the Prime Minister’s Office between 1MDB representative, 1MDB chairman Tan Sri Che Lodin Wok Kamarudin and Aabar chairman Khadem Al Qubaisi.
“I was also present as a witness and has signed the agreement in the witness column as the CEO of 1MDB. I verify that the agreement was a form of mutual understanding where each party must inject US$3 billion (RM12 billion) into Admic.
“Therefore, 1MDB GIL as a subsidiary of 1MDB has issued the US$3 billion (RM12 billion) bonds to comply with this agreement. However, I have been told that the Admic company is not operating and Aabar has not injected any funds into Admic,” he said when reading his witness statement on the 16th day of Najib’s 1MDB trial.
The ninth prosecution witness said the signing ceremony for the agreement was also attended by Najib and Abu Dhabi Crown Prince and Deputy Supreme Commander of the Armed Forces of the United Arab Emirates (UAE) Sheikh Mohamed Zayed Al Nahyan.
Commenting on the establishment of the Admic, he said the company was fully managed by Jasmine Loo as stated in the planning plan by the fugitive businessman, Low Taek Jho or Jho Low.
“The company was founded on Mar 5, 2013, with two ordinary shares owned by 1MDB with me as the Director. Later, Jasmine Loo handled the transfer of one share to 1MDB GIL and one share to Aabar on Aug 10, 2013.
“I viewed this as another hasty step because the company was set up on Mar 5, 2013, for the purpose of the joint venture which was signed on Mar 12, 2013,” he said, explaining that ADMIC’s original purpose was to be a 50:50 SPV investment between 1MDB and Aabar.
Najib, 66, is facing four charges of using his position to corruptly obtain RM2.3 billion from 1MDB and 21 charges of money laundering.
The Pekan MP allegedly committed the four offences at AmIslamic Bank Berhad, Jalan Raja Chulan branch, Bukit Ceylon here between Feb 24, 2011, and Dec 19, 2014, and the 21 offences, at the same place between Mar 22, 2013, and Aug 30, 2013.
The trial was held before Justice Collin Lawrence Sequerah. — Bernama
