KUALA LUMPUR, May 20 — Former 1Malaysia Development Berhad (1MDB) CEO Datuk Shahrol Azral Ibrahim Halmi today acknowledged that he had previously told the company’s board of directors of the risk of the federal Opposition putting a negative spin on 1MDB information given to the Parliament watchdog Public Accounts Committee (PAC).
Shahrol is the ninth prosecution witness testifying against Datuk Seri Najib Razak in the latter’s corruption and money-laundering trial over more than RM2 billion of 1MDB funds.
Today, Najib’s lead defence lawyer Tan Sri Muhammad Shafee Abdullah continued cross-examining Shahrol, asking about a list of seven documents that the PAC wanted from the 1MDB board and which the 1MDB board had discussed in its meeting.
Shafee asked why Shahrol had in the 1MDB board meeting said that “due to the political composition of the PAC, the contents of documents would likely be taken out of context and spun negatively by the opposition”.
“What was your worry? Because the PAC consists of both the government and Opposition members,” Shafee asked, referring to the PAC’s bipartisan membership with MPs from both the federal government and federal opposition.
Shahrol then explained the concern then over the potential result of handing over 1MDB information to the PAC, saying: “The 1MDB issue around the PetroSaudi International (PSI) investment had been in the news and been used a political wedge against Datuk Seri Najib at that time and I was just putting on record to the board what could happen once these documents are released to the PAC, whose composition also consists of very vocal members of the opposition at that time.”
Shahrol said that one of the MPs, a vocal critic about the 1MDB issue then, was DAP MP Tony Pua. At that time, Najib who was still prime minister and finance minister, was also chair of 1MDB’s board of advisers.
Asked if he was concerned that critics like Pua may leak such information publicly, Shahrol clarified: “It wasn’t a concern, it was just a statement of what would likely happen if we were to comply with this.”
When asked by Shafee if 1MDB intended to not comply or to comply with caution to PAC’s demand for documents for its investigation, Shahrol said that he recalled that the idea he was pushing for was that “it’s an official request, we should try to comply as much as possible” if 1MDB had the documents.
Shahrol said 1MDB had all the documents requested for by PAC at that time, except for the audited accounts of a joint venture company that 1MDB no longer held stakes in by then.
“My view at that time, anything we give, just be cognisant of the fact that once anything is out there, the Opposition would take it out of the meeting room and start having press conferences and pick and choose what they want to say,” Shahrol said, adding that it would be out of 1MDB’s control on what happens to the 1MDB documents.
Shahrol said that 1MDB did not write to the PAC then to say that the documents are sensitive and should not be discussed publicly as 1MDB was passing the information via the Economic Planning Unit to the PAC, but said 1MDB may have used the term “Commercial in Confidence” to indicate the commercial sensitivity of the information.
With PAC carrying out a probe on 1MDB transactions then, Shahrol acknowledged that it was entitled to request for documents and any hindrance to such requests would be obstructing their functions.
Shahrol denies intent to hide sham
When pressed by Shafee, Shahrol however denied any intention to hide a conspiracy over 1MDB funds.
Shafee: Datuk, we discussed yesterday in cross-examination, I have asked you, and suggested to you that 1MDB led by you as CEO was reluctant to provide these documents, because these documents will show the sham in the transaction.
Shahrol: Disagree.
Shafee: I’m putting to you that if these documents were made available at the quickest notice, rather than the quickest time, it will expose you together with Jho Low, Jasmine Loo, Casey Tang, Patrick Mahony, Tarek Obaid, as conspirators in a scheme to embezzle millions of dollars from 1MDB.
Shahrol: Disagree.
Shafee: Lastly, I put to you in connection to that, that is the sole reason why you were motivated in being worried, because you realised that this composition of PAC members, they were no fools, they would have uncovered this sham.
Shahrol: Disagree.
Yesterday, Shahrol had also highlighted in court that 1MDB’s joint venture with PetroSaudi International was seen as borne out of ties between Najib and the late Saudi ruler King Abdullah and that it was seen as a government-to-government deal.
Shahrol had also explained that 1MDB board minutes did not record in detail the discussions by the board, as Najib was heading the Finance Ministry which was the main shareholder of 1MDB.
“If I may, throughout my tenure 2009 to 2013, the members of the board and I was under this pervasive view that we must be careful what we minute and put on paper, lest it can be turned against our main shareholder Datuk Seri Najib at that time.
“There was a good reason for that, because at that time the phrasing that was used, “mesti protect PM” (must protect PM)...The minute was very, very high-level, it doesn't go into details. Some of the items were not minuted in order to not give extra ammunition for political attacks and so on,” Shahrol — who was 1MDB CEO from 2009 to 2013 — had said yesterday.
The trial before High Court judge Collin Lawrence Sequerah resumes tomorrow morning.
