NAJIB TRIAL | Former 1MDB CEO Shahrol Azral Ibrahim Halmi today told the Kuala Lumpur High Court that then prime minister Najib Abdul Razak had in 2009 met with multinational investment bank Goldman Sachs to ask support for 1MDB.

Testifying as the ninth witness in Najib's 1MDB graft trial, Shahrol said the meeting was between Najib and then Goldman Sachs (Global) CEO Lloyd Craig Blankfein.

He added that fugitive businessperson Low Taek Jho, or Jho Low, and then Goldman Sachs Asia CEO Tim Leissner acted as "matchmakers".

"The meeting took place at Najib's suite at the Four Seasons Hotel, New York.

"I was made to understand by Low that the meeting was, among others, to discuss the cooperation between 1MDB and Goldman Sachs for overseas investments.

"Najib informed Lloyd to get Goldman Sachs to support and consult 1MDB investments as Goldman Sachs have expertise in finance and investments," he said.

For this reason, Shahrol (photo) said he trusted engaging Goldman Sachs in 1MDB's dealings.

"I assumed that at the time, the prime minister had asked for Goldman Sachs' commitment to 1MDB.

"From there on, when Low suggested to include Goldman Sachs (financial advisor) in 1MDB's financial and investment negotiations, I assume it is with the prime minister's knowledge.

"I accepted Jho Low's suggestion to use Goldman Sachs' (services) in good faith as high-level meetings have been conducted between the prime minister and the Goldman Sachs Global CEO for cooperation," he said.

Goldman Sachs would go on to arrange three bonds for 1MDB totalling US$6.5 billion, a substantial sum of which was misappropriated.

Holding watching brief

Goldman Sachs' legal representatives are holding a watching brief at Najib's 1MDB trial to gear up for their own cases brought against them by the Malaysian government. 

Goldman Sachs made lucrative fees for arranging three bonds for 1MDB, proceeds of which were allegedly misappropriated to benefit several individuals, including Najib.

The bank made around US$582.5 million (RM2.44 billion) in arranger's fees.

In January, Goldman Sachs CEO David Solomon (photo) apologised to Malaysia for Leissner's role in the 1MDB scandal but insisted the bank had conducted its due diligence. 

“It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government," Solomon said.

Finance Minister Lim Guan Eng had said that the apology was insufficient and that the government wants compensation from Goldman Sachs. 

Najib is facing 25 charges of money laundering and abuse of power over the alleged misappropriation of RM2.28 billion from 1MDB.

The trial is being presided by Kuala Lumpur High Court Judge Collin Lawrence Sequerah.

Jho Low orchestrated 1MDB operations on Najib's behalf - former CEO

Jho Low orchestrated 1MDB operations on Najib's behalf - former CEO

Jho Low asked for 'Milo ais' as soon as entering Najib's home - Shahrol

Jho Low asked for 'Milo ais' as soon as entering Najib's home - Shahrol

CEO of 1MDB precursor had to squat in Jho Low's office in early days

CEO of 1MDB precursor had to squat in Jho Low's office in early days

Shahrol: Jho Low advised both T'ganu and Najib

Shahrol: Jho Low advised both T'ganu and Najib