KUALA LUMPUR, Sept 25 — 1MDB’s abortive joint venture with Petrosaudi International (PSI) was conceptualised during Datuk Seri Najib Razak’s holiday in the south of France with Saudi Arabia’s Prince Turki Abdullah, the High Court heard today.
Former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi testified that he learned this from fugitive financier Low Taek Jho or Jho Low, who asserted that the failed collaboration was mooted and discussed during the event in August 2009.
“Jho also told me that prior to the discussions, Najib had met with (the late) King Abdullah and both leaders agreed to form a JV worth US$2.5 billion for investment for both countries.
“Jho also said that he himself had discussed with Prince Turki and Najib had instructed him to handle and coordinate between 1MDB and PSI.
“That is why, based on my experience with Jho Low from the formation of TIA before and the mandate given to Jho from Najib as what I have said before, I assume the PSI JV was from the orders of Najib himself and must be carried out,’’ he added.
TIA refers to the Terengganu Investment Authority, which was later converted into 1MDB.
PSI and 1MDB entered the abortive joint venture in 2012 for which the Malaysian firm still “paid” the former US$700 million, except that the sum went to one Good Star Ltd, a firm that investigators say whose main beneficiary is Low.
Former prime minister Najib's ongoing 1MDB trial involves 25 criminal charges: four counts of abusing his position for his own financial benefit totalling almost RM2.3 billion allegedly originating from 1MDB and the resulting 21 counts of money-laundering.
Shahrol then explained that Casey Tang, 1MDB’s then-executive director of business development, was appointed to manage the JV between the two firms.
“I told Jho Low that I had no experience in corporate matters to execute the joint venture. Jho Low immediately suggested that the responsibility to manage the JV with PSI be given to Casey Tang.
“Casey was the most senior 1MDB executive at the time. That is why Jho Low had more direct dealings with Casey to execute the agreement with PSI. I had complied with Jho Low’s suggestion to hand over the responsibility to manage the JV to Casey Tang,” he said.
Shahrol said Tang was also experienced in corporate finance including fundraising and corporate structure.
“This was because in the TIA then there was no one other than Casey who had knowledge and experience in finance including fundraising and corporate structure,” he added.
Shahrol also said he was convinced that the JV was legitimate trade cooperation between Malaysia and Saudi Arabia based on the contents of letters that were given to him by Low which were consistent with emails he received from PSI.
“In fact, the content of the letters that were given to me by Jho and the contents of emails and documents from PSI were consistent and this boosted my confidence that this was really a deal done between the Malaysian and Saudi Arabia. Due to this reason, I did not do any counter check with Najib on this matter,” he said.
Tang also had a close relationship with Low, said Shahrol.
