PSI boss gave Najib 'expensive-looking' watch at London hotel, 1MDB ex-CEO tells court

KUALA LUMPUR, Sept 26 — Former prime minister Datuk Seri Najib Razak took an “expensive” watch from former PetroSaudi International (PSI) chief executive Tarek Obaid when they met in London, Datuk Shahrol Azral Ibrahim Halmi told the High Court today.

Testifying against Najib at the latter’s 1Malaysia Development Berhad (1MDB) corruption trial, Shahrol said the watch was given to Najib during 1MBD board meeting at the Four Seasons in London on May 16, 2011.

Shahrol was answering additional questions by senior deputy public prosecutor Datuk Seri Gopal Sri Ram on the details of the meeting between PSI and 1MDB.

Sri Ram: What transpired in the meeting?

Shahrol: The first part of the meeting was Tarek giving a gift to Datuk Seri Najib

Sri Ram: What gift was it?

Shahrol: It was a watch.

Sri Ram: What type of watch was it?

Shahrol: I'm not familiar, it looks expensive.

Sri Ram: So, he took a watch.

Shahrol: Yes.

Shahrol: The next part was when he sat down and discussed about potential PSI and Saudi investments into Malaysia. I can recall we discussed the potential for Saudi to pay to build naval boats for Malaysia.

Sri Ram: Did they discuss the monies that was in the hands of PetroSaudi?

Shahrol: Not at all.

Shahrol then explained to Sri Ram that US$1 billion of 1MDB’s funds were already with Petrosaudi at the time of the meeting in London.

The meeting was held between the two parties to discuss bringing 1MDB’s investments with PSI, about US$1.83 billion, back to Malaysia, said Shahrol.

Shahrol said the 1MDB board was already discussing the issue as early as 2010.

“To my memory, a lot of discussions about the investment with PSI have been done by the board of directors as early as 2010. It can be said that the board of directors wanted the investment with PSI to be brought back for local projects,’’ he said.

Shahrol then explained that after the discussions, both parties agreed to turn 1MDB’s investment in PSI from Murabaha notes to shares in the latter’s subsidiary, PSOSL.

“After months of discussion between 1MDB that is represented by Jasmine (Loo) with PSI, with the help of Jho Low, finally an agreement was met to change 1MDB investment with PSI from the Murabaha notes to equity holdings with PSI’s subsidiary PSOSL.

“1MDB will buy 49 per cent of PSOSL shares by changing the Murabaha notes which at the time was USD2.222 million not counting yet the added value of coupons that PSI has to pay to 1MDB,’’ he

Shahrol further explained that the switch of the form of investment would help 1MDB’s investment in PSI to be repatriated back in stages for other 1MDB projects.