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KUALA LUMPUR: Former 1MDB CEO Shahrol Azral Ibrahim Halmi told the High Court in Najib Razak’s abuse of power lawsuit that the sovereign wealth fund had never discussed any proposal to acquire an alleged subsidiary company called Devonshire Funds Limited.
Shahrol said this in response to Najib’s attorney, Wan Aizuddin Wan Mohammed, who inquired about five payment tranches for more than $ 646 million from 1MDB’s subsidiary company, 1MDB Global Investment Limited, to Devonshire between 20-21. March 2013.
“No, the board of directors never approved any acquisitions of Devonshire at the time of the events nor was there any shareholder resolution (Najib) to approve this acquisition,” he said.
Aizuddin also showed the witness a document claiming that Devonshire was a subsidiary company of 1MDB.
The court previously heard that Goldman Sachs helped 1MDB raise $ 3 billion in bonds for the Tun Razak Exchange (TRX) and Bandar Malaysia projects in 2012. The US bank received more than $ 200 million as fees from organizers.
The prosecution held that of the US $ 2.72 billion paid to 1MDB Global Investment, more than US $ 1.06 billion entered the accounts of two trust funds, namely Devonshire Funds and Enterprise Emerging Market Fund (EEMF). , in March 2013.
Of this, more than US $ 890 million was transferred to Tanore Finance Corporation, which was controlled by fugitive Tan Kim Loong. Of that amount, more than US $ 681 million was subsequently deposited into Najib’s account.
Shahrol also told the court that the directors of 1MDB never discussed the use of the US $ 3 billion, but recalled that its then CFO Azmi Tahir informed the company that the funds “will be placed with the fund manager.” .
Aizuddin: Do you agree that since there was no board approval, the $ 3 billion was embezzled without your knowledge, as well as the shareholder?
Shahrol: It was made before the board of directors was known, but I cannot speak on behalf of the shareholder on his knowledge.
The witness, however, disagreed that he tried to mislead Najib by sending a proposal letter to the then prime minister about 1MDB’s joint venture with Aabar Investments PJS (Aabar) of Abu Dhabi. He also denied having played an “active role” in the misappropriation of company funds.
The hearing continues tomorrow before Superior Court Judge Collin Lawrence Sequerah.
Najib is currently on trial on 25 charges of money laundering and abuse of power over alleged 1MDB funds in the amount of RM2.28 billion deposited into his AmBank account between February 2011 and December 2014.
Before the day’s proceedings ended, Sequerah asked the lawyers when the defense could conclude its cross-examination of Shahrol.
Co-attorney Muhammad Shafee Abdullah said Aizuddin could take about two hours tomorrow while he finishes.
Ad-hoc prosecutor Gopal Sri Ram later told the court that the prosecution will re-examine Shahrol on Thursday.
