Najib flip-flopped over due diligence on 1MDB, says ex-CEO
Shahrol Azral Ibrahim Halmi says the former prime minister changed his mind several times about conducting an audit on the state investment fund.
KUALA LUMPUR: The High Court in Najib Razak’s 1MDB corruption trial heard today the former prime minister was indecisive whether the auditor-general should conduct an audit and due diligence on the state investment fund.
Former 1MDB CEO and director Shahrol Azral Ibrahim Halmi said the fund’s board of advisers, chaired by Najib, decided on Oct 16, 2009 to appoint Ernst and Young to conduct the exercise.
However, on Dec 22, 2009, Najib decided that there was no need for 1MDB to go through an audit and due diligence, he said.
Shahrol, the ninth witness in the trial, said that on June 7, 2010, Najib agreed with then Treasury secretary-general Wan Aziz Wan Abdullah that the auditor-general carry out the task.
A month later, he said, Najib agreed with him that the due diligence be carried out by Ernst and Young.
Shahrol said his decision on the audit was based on directives or orders from fugitive businessman Low Taek Jho, also known as Jho Low.
“My belief was that Jho Low’s orders actually came from Najib,” he said when cross-examined by Najib’s lawyer Muhammad Shafee Abdullah on day 21 of the trial.
1MDB, previously known as Terengganu Investment Authority, came under the control of Finance Ministry Incorporated in September 2009.
Shahrol today repeatedly said he signed letters in his capacity as CEO but the contents came from Jho Low, who had no official role in 1MDB.
“I followed him because everything in 1MDB seemed to be predetermined,” he said, adding that Jho Low could have obtained “directions and decisions” after phone conversations or through text messages from Najib.
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To a question by Shafee, Shahrol said Jho Low did not want 1MDB accounts to be audited beyond July 31, 2009 as it would reveal that US$700 million was diverted to Good Star Ltd on Sept 30, 2009, a company that belonged to the businessman.
“Yes, the auditor-general would have discovered that the money had been channelled to Good Star Ltd,” he said.
He also agreed with Shafee that he should take responsibility for what happened in 1MDB because he signed all the letters.
However, he disagreed that he was in cahoots with Jho Low to conceal the real state of the company.
Shafee: You could not be as blind as a bat to follow Jho Low?
Shahrol: I disagree.
When it was suggested to him that Najib never instructed any due diligence on 1MDB, Shahrol said he had no comments.
Najib is facing 25 charges of money laundering and abuse of power over alleged 1MDB funds in his AmBank accounts.
He is accused of abusing his position to obtain RM2.28 billion in bribes in February 2011 and December 2014.
He is also said to have transferred RM2.28 billion in illegal funds to his bank accounts and to have subsequently used the money.
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The hearing before High Court judge Collin Lawrence Sequerah continues.