KUALA LUMPUR, May 20 — The defence in Datuk Seri Najib Razak's 1 Malaysia Development Berhad (1MDB) corruption trial today questioned the independence of Tan Sri Ong Gim Huat during his tenure as the firm’s independent director due to his business relationship with Tan Sri Larry Low Hock Peng, who is Low Taek Jho’s father. 

Najib’s defence lawyer, Tan Sri Muhammad Shafee raised the issue during the cross-examination of 1MDB former chief executive Datuk Shahrol Azral Ibrahim Halmi, pressing the latter whether Ong had exercised his duty without being influenced by other parties. 

Ong was appointed to the board of 1MDB in 2010. He was also the chairman of 1MDB board’s audit and risk management committee. 

Shafee then explained to Shahrol of Ong’s business relationship with Larry Low and how the two had gone way back. 

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Citing a report published by the Edge Markets titled “1MDB director Ong is a business partner of Jho Low’s father” as one of his examples, which states that both men had been in business with each other for over three decades, Shafee questioned Shahrol whether Ong was qualified to be called an independent entity within the company. 

Shafee also pointed out that both Larry Low and Ong are directors and shareholders of Wonder Bay Sdn Bhd and had been in business with each other since 1995. 

Both men were also conferred the title of Tan Sri by the Yang di-Pertuan Agong in 2013 and even on the same day, said Shafee. 

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Shahrol said he was unaware of these facts when Ong was appointed to the board and had not seen the content of the article mentioned by Shafee.

The Edge wrote this article and we can provide proof what they wrote, they got SSM search, we did it and they are all accurate about the connection of Larry Low, Jho Low’s father with Tan Sri Ong, they are “kakis”, very close friends, more than close,’’ he said. 

Pressed further by Shafee, Shahrol said he was not comfortable to answer whether Ong was independent or otherwise. However, he stressed that throughout his tenure as 1MDB chief executive, he found Ong to have acted in the best interest of the company. 

Shafee: With all these facts, Tan Sri Ong couldn’t have been an independent director? 

Shahrol: I have no comment on that, I don’t feel I can judge Tan Sri Ong’s independence or non-independence. 

Shafee: In your previous cross-examination, you used the word, Tan Sri Ong was put there because he was clean and an outsider to the system, now with this info that I provided to you, that statement by you couldn't have been right. 

Shahrol: I stand by that statement because at the time that was what I believed. 

Last year, Shahrol testified that Low or commonly known as Jho Low had proposed Ong to be a board member of 1MDB due to his extensive knowledge in real estate property development 

Today, Shahrol said that 1MDB’s management did not carry out a background check or conduct due diligence on Ong as Najib “wanted him on board”

“The process was his name first came out via Jho Low, but you must remember that the prerogative to appoint board members was entirely up to Datuk Seri Najib, so I did not perform any further checking on his background, because I saw this as Datuk Seri Najib wanted him on board.

“Tan Sri Ong never showed me any cause to believe that he is any other than independent and looking after the interest of the company,’’ he said.

Shahrol was 1MDB chief executive from later 2009 to until March 15, 2013 when he was transferred to the government efficiency unit Pemandu and ceased being a 1MDB board member in 2016. 

Shahrol stressed that it was the prerogative of Najib, who was the then prime minister to appoint members of the board for 1MDB, in accordance with the firm’s constitution.

Previously, Shahrol had also confirmed with Shafee that Low had proposed numerous people to 1MDB, including executive director Casey Tang, investment officer Nik Faisal Ariff Kamil and Jasmine Loo, all of whom are wanted by the authorities.

Shahrol also stated that he did not know whether Najib was informed by any partyon Ong’s relationship with Larry Low. 

Shahrol had been on the witness stand, testifying against Najib since September of last year.

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.