Shafee, 1MDB's ex-counsel spar over witness protection poser

The counsel for ex-premier Najib Abdul Razak’s stepson and Jasmine Loo verbally crossed swords in the civil court over whether the latter was under the witness protection programme.

Lawyer Muhammad Shafee Abdullah, who is acting for Riza Abdul Aziz, was cross-examining Loo, who is ex-1MDB general counsel, on whether she struck a deal with 1MDB in its US$248 million lawsuit against the Hollywood film producer.

Shafee grilled her on whether she entered into any alleged agreement to testify against Riza in return for 1MDB withdrawing its own lawsuit against her.

However, former lawyer Loo insisted that she could not answer the question as the law forbids her from doing so.

Shafee: You became a protected witness.

Loo: It is inappropriate to comment.

Shafee: I am not asking anything confidential. I was merely asking as you were produced in open court, you are not hidden by a screen where only your voice is heard. Are you under the witness protection programme?

Loo: I cannot answer that, as the law does not allow me to answer the question.

Shafee: I submit that your answer is not correct and you are hiding behind this protection programme.

Loo: I am unable to say anything. I am unable to comment.

Shafee was referring to 1MDB’s US48 billion lawsuit against Loo, Najib, and several other defendants.

Return to M’sia

Rumours on whether she was a protected witness swirled since at least early this year when she became a prosecution witness in a separate RM2.27 billion 1MDB criminal graft trial against Najib.

Loo, 51, was overseas for several years after the 1MDB scandal broke out, but she returned to Malaysia last year to assist the authorities in their investigation.

During proceedings before the Kuala Lumpur High Court today, the subpoenaed witness said she volunteered to testify for 1MDB against Riza in order to assist the court and save its time.

While being cross-examined by Riza’s co-counsel Wan Azwan Aiman Wan Fakhruddin, Loo testified that she saw the defendant at fugitive businessperson Low Taek Jho’s (Jho Low) residences in Los Angeles and New York.

The former lawyer claimed she was with Low at both residences when Riza allegedly came knocking.

Loo said Low told her to open the door for Riza, and that both men chatted in such a way that made her feel they were close.

She added that during another trip at a ski resort at Whistler, Canada, she heard Low deferred to Riza and called the Hollywood filmmaker “buddy”.

Last week, she testified that she believed Low regarded Riza as a good friend.

The civil suit hearing before judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes this afternoon. It is also scheduled for Wednesday and Friday this week.

Plaintiff 1MDB contended that US$248 million of its funds 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.

Red Granite Pictures produced the 2013 hit “The Wolf of Wall Street”, 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.

‘Defendants took money knowing its source’

Via the civil action filed in 2021, 1MDB and its three subsidiaries claimed that its funds 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.

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 because Riza managed both firms, he would have known 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.

Saudi loan

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 difficult 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 1MDB’s ongoing civil action 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 finance minister during his tenure as prime minister.

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

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