PMO told 1MDB to take more debt despite already RM32 billion in the red.
The Prime Minister’s office told 1Malaysia Development Berhad (1MDB) to take on more debt, despite the company’s balance sheet showing it was already RM32 billion in the red, the High Court in Kuala Lumpur heard today.
The orders were given by fugitive financier Low Taek Jho and an aide of Najib Razak, former chief executive officer Shahrol Azral Ibrahim Halmi told the court during the trial of Najib, the former prime minister accused of multiple counts of abuse of power and criminal breach of trust.
During cross-examination by Najib’s lawyer Wan Aizuddin Wan Mohamad, Shahrol said he was acting on instructions to go ahead with raising US$3 billion (RM12.6 billion) in bonds for the joint venture deal between Aabar Investments PJS Ltd (BVI) and 1MDB.
Shahrol said the instructions came from the Prime Minister’s Office (PMO) via Low – also known as Jho Low – and Azlin Alias, Najib’s former principal private secretary and the director of economics in the PMO, which oversaw 1MDB matters.
Wan Aizuddin: At the time, 1MDB had amassed a debt of RM32 billion, would it be prudent to take on another loan to eliminate the buyback action?
Shahrol: We were under instructions from the PMO and the shareholders to get it done.
Wan Aizuddin: How was this instruction given to you?
Shahrol: They were talking points passed to me by Low…there was also an email from Azlin detailing the final form of the joint venture and the initial public offering (IPO).
Shahrol also said he received instructions from Jho Low via talking points when he was no longer in 1MBD and was working for Pemandu on the sovereign wealth fund’s IPO.
He added there was also no go-ahead from the 1MDB board on the utilisation of the US$3 billion to finance the Tun Razak Exchange project.
Wan Aizuddin: You can also confirm that is no approval by 1MBD board of directors in relation to utilisation of US$3 billion bond?
Shahrol: There was no specific approval. However, there one time that [former 1MDB chief financial officer] Azmi [Tahir] updated the board, he said the funds will be placed with fund manager.
Wan Aizuddin: No general meeting about the utilisation?
Shahrol: Correct
Wan Aizuddin: There was no resolution for utilisation of the US$3 billion?
Shahrol: Correct.
Shahrol said the deal with Aabar Investments PJS Ltd (Aabar BVI) was pushed through despite the debt because of Low’s involvement.
Shahrol also denied pushing through the JV for his personal gain and denied having misled Najib.
Wan Aizuddin: You knowingly and actively participated in defrauding 1MDB by misleading the board, the [then] PM and the government of Malaysia.
Shahrol: I disagree.
Wan Aizuddin: You knowingly participated in concealing facts from the board of directors of 1MDB, the government and the [then] prime minister.
Shahrol: I disagree.
Wan Aizuddin: The embezzlement of funds out of the US$3 billion bonds was done with your full knowledge in cahoots with Jho Low and company, as well as Goldman Sachs.
Shahrol: I disagree.
It later emerged that Aabar BVI was a shell company registered in the British Virgin Islands and controlled by Low, and not an actual subsidiary of International Petroleum Investment Company (IPIC), which should have received the funds.
The joint venture between Aabar BVI and 1MDB ended up not materialising but was used by the sovereign wealth fund to raise its third bond, arranged by Goldman Sachs, totalling US$3 billion.
Shahrol said Low got his way with the companies because he was Najib’s confidante.
The former prime minister is on trial for four counts of power abuse to enrich himself and 21 counts of laundering RM2.3 billion of 1MDB funds.
The trial before judge Collin Lawrence Sequerah continues tomorrow. – TMI
Earlier reports:
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Aug 5, Najib’s 1MDB Trial: Day 43
Aug 4, Najib’s 1MDB Trial: Day 42
Aug 3, Najib’s 1MDB Trial: Day 41
Jul 17, Najib’s 1MDB Trial: Set to Last Until at Least June 2021
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Jul 15, Najib’s 1MDB Trial: Day 38
Jul 1, Najib’s 1MDB Trial: Day 37
Jun 30, Najib’s 1MDB Trial: Day 36
May 21, Najib’s 1MDB Trial: Day 35
May 21, Najib’s 1MDB Trial: Day 34
May 19, Najib’s 1MDB Trial: Day 33
Nov 11, Najib’s 1MDB Trial: Day 32
Nov 7, Najib’s 1MDB Trial: Day 31
Nov 6, Najib’s 1MDB Trial: Day 30
Nov 5, Najib’s 1MDB Trial: Day 30
Nov 4, Najib’s 1MDB Trial: Day 28
Nov 4, 1MDB Trial: Judge Reprimands Najib After Tg Piai Trip
Oct 31, Najib Calls in Sick with Swollen Eyes, 1MDB Trial Postponed Yet Again
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Oct 29, Najib’s 1MDB Trial: Day 26
Oct 24, Najib’s 1MDB Trial: Day 25
Oct 24, Najib Asks Prosecution to Hand Over Justo’s Information Given to MACC
Oct 21, Najib’s 1MDB Trial: Day 24
Oct 17, Najib’s 1MDB Trial: Day 23
Oct 17, Jho Low Changed 1MDB Constitution to Give Najib Absolute Power
Oct 16, Najib’s 1MDB Trial: Day 22
Oct 14, Najib’s 1MDB Trial: Day 21
Oct 10, Najib’s 1MDB Trial: Day 20
Oct 9, Najib’s 1MDB Trial: Day 19
Oct 8, Najib’s 1MDB Trial: Day 18
Oct 7, Najib’s 1MDB Trial: Day 17
Oct 7, Some Umno People Envious of Jho Low-Najib Ties, Court Told
Oct 1, Najib’s 1MDB Trial: Day 16
Oct 1, Arul Kanda Told Ex-1MDB CEO to Leave Country to Avoid PAC Meeting
Oct 1, Ex-1MDB CEO Paid RM99K Monthly, RM1.5M Bonus
Oct 1, Jho Low Helped Plan Abu Dhabi Crown Prince’s Trip to Sway Voters for GE13
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Sept 30, Witness: Najib Used 1MDB to Raise Funds for GE13
Sept 26, Najib’s 1MDB Trial: Day 14
Sept 26, Jho Low, Tim Leissner Played “Matchmaker” for Najib to Meet Goldman Sachs
Sept 26, US$9M Transferred from Jho Low’s Good Star to Riza Aziz’s Red Granite Pictures
Sept 26, Jho Low, Najib Faked Meeting Minutes to Move US$750M from 1MDB to PSI
Sept 26, Najib Agreed to 1MDB Borrowing RM3B from SOCSO to Lend to PetroSaudi
Sept 25, Najib’s 1MDB Trial: Day 13
Sept 24, Najib’s 1MDB Trial: Day 12
Sept 23, Najib’s 1MDB Trial: Day 11
Sept 19, Najib’s 1MDB Trial: Day 10
Sept 18, Najib’s 1MDB Trial: Day Nine
Sept 18, Najib’s Ex-Aide Led MACC to Raid on Jho Low’s Apartment
Sept 18, Najib’s 1MDB Trial Halted Briefly for Najib to See Eye Specialist
Sept 17, Najib’s 1MDB Trial: Day Eight
Sept 17, Witness Identifies Riza Aziz, Arul Kanda and Five Others as Key Players in 1MDB Saga
Sept 17, Bono, Queen of Jordan, Rosmah Floated as Trustees for TIA
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Sept 11, Najib’s Eye Infection Halts 1MDB Trial
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Sept 10, Najib’s Ex-Aide: Jho Low Provided Scripted Responses to Deny His Involvement in 1MDB
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Sept 5, 1MDB Trial: Judge Raps Shafee over Najib’s Tardiness
Sept 5, 1MDB Trial: Najib’s Ex-Aide Took US$200K Loan from Jho Low to Buy Property
Sept 5, 1MDB Trial: Najib’s Ex-Aide Accused of Lying
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Sept 4, Najib’s Ex-Aide: Mudabala CEO Was Promised All Sorts of Things
Sept 4, Najib’s Ex-Aide, Jho Low on “Secret China Mission” to Bail Out 1MDB
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Sept 3, Jho Low Gave Possibly Forged Letters from Saudi Arabia to Stop 1MDB Probe
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Aug 28, Najib’s 1MDB Trial: Day One
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