Najib benefitted from 1MDB-linked transactions: Ex-1MDB CEO

Former prime minister Najib Abdul Razak was among those who benefited from an alleged conspiracy involving transfers of billions of ringgit linked to 1MDB, the Kuala Lumpur High Court heard today.

1MDB’s former CEO Shahrol Azral Ibrahim Halmi testified that Najib, alongside wanted businessperson Low Taek Jho or Jho Low and several others had benefited from the monetary transfers that formed the crux of the 25 charges against the former premier.

Najib is on trial over four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of funds from sovereign wealth fund 1MDB.

Ninth prosecution witness Shahrol was testifying during re-examination by lead DPP Gopal Sri Ram during today’s trial.

Sri Ram had asked Shahrol who benefited from the alleged conspiracy in hindsight.

Over the course of cross-examination by Najib's defence team, Shahrol was also grilled on whether the witness had benefited and was part of the alleged conspiracy.

Sri Ram: In hindsight, who benefited from these transactions?

Shahrol: In hindsight, based on documents (produced) in court and during the investigation, the beneficiaries are Jho Low, Casey (Teng), Jasmine (Loo), Tarek Obaid, Khadem (Al-Qubaisi), Patrick (Mahoney), (Mohamed Badawy) Al-Husseiny, as well as Najib.

Aside from Jho Low and Najib, the other individuals named are also allegedly linked to the 1MDB affair.

Teng was 1MDB's former business development executive director, Loo was 1MDB’s former general counsel, Tarek was formerly Petrosaudi International Limited’s (PSI) director, Khadem was an executive of Aabar, a subsidiary of Abu Dhabi’s based International Petroleum Investment Company (IPIC), Mahoney was linked to IPIC and Mohamed Badawy was CEO of Aabar.

When Sri Ram asked Shahrol whether he had benefited from the alleged transactions, the witness replied he did not receive a penny from the whole affair.

Shahrol made these denials when asked by Sri Ram on several 1MDB-linked transactions where the defence had previously hinted that the witness was part of the alleged conspiracy with Jho Low and several others.

Among these was concerning the alleged diversion of US$700 million of funds from 1MDB to Good Star Limited, which was allegedly owned by Jho Low.

It was reported that the US$700 was part of 1MDB's US$1.83 billion investment intended for a joint venture with PSI.

Sri Ram: Regarding the (transfer of) US$700 million to Good Star, did you get a penny of that?

Shahrol: No.

When Sri Ram asked what role that Jho Low played when relaying 1MDB-linked talking points to Shahrol from 2009 until 2013, the witness said that the businessperson relayed information and instructions from Najib to the witness about the sovereign wealth fund's business affairs.

In regards to why Shahrol did not try to verify with Najib then over the veracity of these talking points, the witness said it was because the accused's actions were consistent with the allegation that the talking points by Jho Low were linked to the accused.

"At that time, and from the very beginning, of the establishment of 1MDB, all instructions and details contained in the talking points were either consistent with the actions or subsequent actions of the shareholder," Shahrol said.

Najib was then chairperson of the board of advisors of 1MDB and also then finance minister. 1MDB was fully-owned by the Minister of Finance Incorporated (MoF Inc).

New issues raised

Earlier today during the defence's final cross-examination, Shahrol testified that Jho Low had given over 100 talking points to him throughout the witness' time at 1MDB from 2009 to 2016.

Shahrol was 1MDB CEO from 2009 to March 2013 and remained on the sovereign wealth fund's board of directors until 2016.

He was answering a question from Najib's lead defence counsel Muhammad Shafee Abdullah on how many talking points were sent by Jho Low to Shahrol.

Yesterday, Shahrol testified that Jho Low gave multiple talking points on 1MDB to him, even after he stepped down as 1MDB CEO in March 2013.

Shahrol today also testified that he was "berani kerana benar" (Malay idiom meaning somebody who is brave because of the truth).

The witness was replying to a question from Shafee on why the witness seemed to be confident of not being the next in line to be charged concerning the 1MDB affair.

Shafee had referred Shahrol to the event where several 1MDB-linked personalities like Jho Low and Loo had been charged in absentia in the Malaysian courts in relation to the 1MDB affair, among others.

Shafee: You seemed confident that you are not going to be next.

Shahrol: We have a Malay saying of "berani kerana benar".

When Shafee grilled the witness on whether the latter had made a deal with prosecutors not to be charged in return that he (Shahrol) testify against Najib, Shahrol disagreed.

At the end of proceedings today, Najib's defence counsel Wan Aizuddin Wan Mohammed applied for the defence to be allowed to continue to cross-examine Shahrol despite the prosecution having wrapped up its re-examination of the witness.

Under the law in regards to witness testimony in a criminal trial, the prosecution would conduct examination-in-chief of the witness, followed by the defence cross-examining the witness and finally, the prosecution would cap it off with a re-examination of the witness.

Wan Aizuddin informed justice Collin Lawrence Sequerah today that the application was made because new issues were raised during the prosecution's re-examination that were not touched by the defence during cross-examination.

The lawyer cited among these issues being the alleged monetary flow chart that purportedly showed money flow of US$681 million flowed into an AmBank account with the account number 694, that was allegedly done in a way to implicate Najib.

It was previously reported that the 694 accounts belonged to Najib.

However, Sequerah then informed the defence that they could make the application later as the court would prefer to release Shahrol from the witness stand and carry on to the next witness produced by the prosecution.

The judge added that Shahrol is subject to recall for the purpose of cross-examination by Najib's defence later.

After Shahrol was released from the witness stand, Sri Ram informed the court that former 1MDB CEO Mohd Hazem Abdul Rahman is the next prosecution witness to testify when the trial resumes next week.

The trial then adjourned for today and will resume on Monday next week with Hazem set to take the witness stand as the 10th prosecution witness.

Hazem took over as 1MDB CEO from Shahrol, who stepped down as CEO in March 2013. Hazem remained as CEO until 2015.

Shahrol had been testifying since September last year.

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