Che Lodin Wok Kamaruddin told the High Court in former prime minister Najib Razak’s 1MDB trial here today that Shahrol was given almost RM1.5 million in bonus for his “performance” in 2012.
“The (internal) risk and audit committee did not suggest (any action against Shahrol).
“The assessment (to reward him the bonus) was based on Shahrol’s role in promoting 1MDB,” he said when questioned by deputy public prosecutor Mustafa P Kunyalam.
Mustafa had pointed out that Lodin’s predecessor, Bakke Salleh, was not satisfied with Shahrol and his management staff disobeying instructions on the transfer of US$700 million to an unknown firm earlier in 2012.
The court heard that in 2009, 1MDB entered into a joint venture with PetroSaudi International Ltd (PSI) and was required under the contract’s terms to fork out US$1 billion for the venture.
The US$1 billion was supposed to be deposited into the 1MDB-PSI joint venture account but only US$300 million was transferred into this account.
It was later revealed that US$700 million was transferred to Good Star Ltd, a company controlled by fugitive businessman Low Taek Jho, or Jho Low.
Bakke resigned in the same year (2009) as a sign of protest.
Lodin said today he was not aware of the reason for Bakke’s resignation.
“I asked one or two directors (why Bakke resigned) and they too were caught by surprise,” he said.
He also told the court that he and the board of directors were briefed by Shahrol that Good Star was a subsidiary of PetroSaudi and that it was acceptable to remit US$700 million to Good Star.
Mustafa: Did you know Good Star was owned by Jho Low at that time?
Lodin: We didn’t know.
Mustafa: So, when did you find out about Jho Low’s ownership in Good Star?
Lodin: I think afterwards, when I read (about it) in the media.
‘I don’t know why KPMG refused to sign financial statement’
Lodin also told the court he did not understand why 1MDB’s former auditors, KPMG, were adamant about refusing to sign off on the firm’s 2013 financial statement.
“We have all the reports from BSI Bank about the US$2.3 billion investment in Brazen Sky.
“I was wondering what KPMG wanted regarding Brazen Sky. Maybe their standards are unique,” Lodin said, claiming that KPMG’s request might not be part of the general requirements in the audit exercise.
He said that as KPMG refused to sign the financial statement, 1MDB had no choice but to terminate KPMG’s services and replace them with Deloitte.
“Deloitte was happy to sign off,” Lodin said.
Najib is on trial for 25 charges of abuse of power and money laundering over funds amounting to RM2.28 billion that were deposited into his AmBank accounts between February 2011 and December 2014.
The hearing before Justice Collin Lawrence Sequerah continues tomorrow.