1MDB's ex-counsel: Jho Low regarded Najib's stepson as good friend

Former prime minister Najib Abdul Razak’s stepson was good friends with fugitive businessperson Low Taek Jho (Jho Low), according to 1MDB's former general counsel.

Jasmine Loo claimed that her belief stemmed from having met Riza Abdul Aziz on a ski trip with Low at Whistler, Canada between late 2012 and early 2013.

In her written witness statement to the Kuala Lumpur High Court, the witness for 1MDB said she had met Riza on multiple occasions.

Loo’s (above) testimony is being relied on by the Malaysian sovereign wealth fund in its US$248 million (RM1.08 billion) lawsuit against Riza, the first defendant and filmmaker of Hollywood blockbusters such as the 2013 hit “Wolf of Wall Street”.

Question: Have you seen Low and the first defendant together?

Loo: Yes, I believe that Low regarded him as a good friend.

Question: Can you give an example of why you believe that they are good friends?

Loo: Yes, I first met the first defendant on a ski trip with Low and his family in Whistler, Canada, at the end of December 2012 or January 2013. Subsequently, after I left the employment at 1MDB, I met and became acquainted with him on other occasions when I travelled overseas with him.

The civil court today was hearing the action, where plaintiff 1MDB contended that US$248 million of its monies were embezzled to fund the movie production of Riza and two other defendants as well as for gambling and real estate.

The two other defendants are Riza's companies, namely California-based film studio Red Granite Pictures Incorporated and Red Granite Capital Limited.

The “Wolf of Wall Street” is a biographical black comedy crime film about the rise and fall of Jordan Belfort, a stockbroker in New York City who engaged in rampant graft and fraud on Wall Street. Hollywood actor Leonardo DiCaprio played the main role of Belfort.

Whole new world

During cross-examination by Riza's counsel Wan Azwan Aiman Wan Fakhruddin today, Loo explained that her impression of the defendant and Low being good friends was her observation of seeing both men on the ski trip.

Wan Azwan: That makes you a good friend of Low too.

Loo: I do not deny that.

Wan Azwan: Have you been on trips with Low before this trip (Canada)?

Loo: Yes.

The 51-year-old recalled that she seemed to be the only one from 1MDB on the same ski trip as Low, who is still at large and wanted by the authorities, and Riza.

As judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan presided over the open-court proceedings, Loo said she would not know whether Low had ever invited other members of 1MDB to the same trip.

Wan Azwan: This was a whole new world to you.

Loo: Yes.

Loo joined 1MDB as its general counsel in May 2011 and was with the fund until November 2013.

In her witness statement, she claimed she continued to perform ad-hoc tasks when requested by 1MDB management for pending matters, and that after that she did not work with the fund and pursued personal investment.

She was on the run for several years after the 1MDB scandal broke out, but she returned to Malaysia last year to assist the authorities in their investigation.

Temperature rises over Loo’s criminal case

During proceedings today, Wan Azwan grilled Loo over her pending criminal case before the Malaysian courts.

The lawyer was referring to 2018 when Loo was charged in absentia under Section 179 of the Capital Markets and Services Act 2007 with commissioning and abetting the alleged misappropriation of US$2.7 billion from three 1MDB bonds underwritten by Wall Street investment bank, Goldman Sachs.

As Loo was in the midst of replying, 1MDB's counsel Rabindra S Nanthan objected to the question, claiming it was irrelevant to the present civil proceedings.

Raja Ahmad then said the court took note of the objections, but added that it would be premature for him to make a ruling now.

When met after proceedings, Riza's lead defence counsel Muhammad Shafee Abdullah said the defendant would not be taking the witness stand.

It is not clear at present whether the defendant's legal team would call other witnesses to rebut the civil action.

The civil court proceedings are set to resume on Monday next week.

Monies siphoned

Via the civil action filed in 2021, 1MDB and its three subsidiaries claimed that its monies were siphoned out through “various artifices, devious devices and plain old deceit that deceived and misled various innocent third parties”.

“The plaintiffs contend that the sum of US$248 million was ultimately used for the personal benefit of Riza and his associates to fund Red Granite Pictures’ motion pictures, purchase real estate, purchase movie memorabilia, and pay for gambling expenses,” the plaintiffs contended.

Besides 1MDB, the other plaintiffs are 1MDB Energy Holdings Limited, 1MDB Energy Limited, and 1MDB Energy (Langat) Limited.

Loan from Saudi royalty

In the opening statement for the trial, the plaintiffs claimed that the defendants knowingly received funds in circumstances where the funds had been misappropriated from 1MDB.

1MDB and its three subsidiaries claimed that Riza and his two firms dishonestly assisted in the breaches of fiduciary duty by Low.

The plaintiffs alleged that due to Riza managing both firms, he would know that the funds originating from 1MDB had been misappropriated.

1MDB and its subsidiaries are seeking, among others, a declaration that Riza is responsible for the misappropriated funds and to pay back the money to them.

Through his statement of defence, Riza claimed that the money was received from a loan from Saudi royalty or the International Petroleum Investment Company (IPIC) and not from 1MDB.

The defendant claimed that it was hard for an unknown film producer to obtain loans from commercial banks and that had compelled him to seek funding from individuals or companies.

In May 2020, the criminal court granted Riza a discharge not amounting to an acquittal (DNAA) for money laundering involving US$248 million linked to 1MDB funds.

The DNAA is only for the criminal case, which is separate from the present ongoing civil action by 1MDB against him.

Riza's stepfather Najib is serving a six-year jail sentence over the RM42 million SRC International criminal graft case.

Previously a subsidiary of 1MDB, SRC’s ownership was later fully transferred to the Minister of Finance Incorporated (MOF Inc). Najib was also a finance minister.

Law firm Shearn Delamore & Co is acting for 1MDB and its subsidiaries.

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