KUALA LUMPUR: The High Court here was told today that the takeover of the Terengganu Investment Authority Berhad (TIA) by 1Malaysia Development Berhad (1MDB) was to hide Datuk Seri Najib Abdul Razak’s misappropriation in the Islamic Medium Term Notes (IMTN) bond of RM5 billion applied for by TIA.
Former CEO of 1MDB and TIA Datuk Shahrol Azral Ibrahim Halmi revealed this when reading out his 270-page witness statement on the 13th day of the former prime minister’s 1MDB trial.
“Based on what I know now, I believe the takeover of TIA by 1MDB on a ‘as is where is basis’ was planned by Jho Low (Low Taek Jho) with the blessing of Datuk Seri Najib to hide his misappropriation during the RM5 billion IMTN bond issuance with government guarantee in May 2009,“ he said.
Shahrol Azral, 49, also said Jho Low directed him to write a letter to Najib to ensure that 1MDB need not be audited.
The ninth prosecution witness said Jho Low asked him to write a 1MDB letter dated Dec 11, 2009 to the former prime minister on the excuse that it was Najib’s request.
“In that letter, 1MDB talked about ‘1MDB: Updates & Approvals’ where TIA referred to the decision and approval of the 1MDB Board of Advisors (BOA) with regard to the direction of BOA on the takeover process of TIA by 1MDB,” he said.
The key witness said he was not involved in initial discussions on the matter but believed the content of the letter had been discussed earlier by Jho Low and Najib.
“This is based on a ‘talking points’ document emailed by Jho Low to me which is no longer in my possession.”
He said the letter was copied to Tan Sri Ambrin Buang (Auditor General), Tan Sri Dr Wan Abdul Aziz Wan Abdullah (Secretary-General of Treasury) and Tan Sri Che Lodin Wok Kamaruddin (Chairman of the Board of Directors).
Shahrol Azral also confirmed that he received the 1MDB letter from Najib dated Dec 22, 2009.
“The letter stated that Datuk Seri Najib acknowledged that the 1MDB BOA agreed with the federalisation of TIA into 1MDB as approved by the Cabinet on a ‘as is where is’ basis and there was no need for an audit and due diligence by the Auditor-General because the share ownership transfer had been done.
“Datuk Seri Najib also agreed with the decision of the 1MDB Board of Directors (BOD) that 1MDB as a company incorporated under the Companies Act 1965 should be audited by a professional external auditor appointed by the BOD and the need for the Auditor-General to audit 1MDB did not arise at all,” he said.
Najib, 66, faces four charges of using his position to obtain a bribe of RM2.3 billion in 1MDB funds and 21 charges of money laundering involving the same amount of the funds.
The MP for Pekan is alleged to have committed the four offences of corruption at the branch of AmIslamic Bank Berhad, Jalan Raja Chulan, Bukit Ceylon here between Feb 24, 2011 and Dec 19, 2014 while all the money-laundering offences between March 22, 2013 and Aug 30, 2013 were also committed at the same place.
The hearing before judge Collin Lawrence Sequerah continues. - Bernama
