Jho Low had influence over 1MDB from the start, court told

Key witness: Shahrol (right) at the High Court yesterday.

KUALA LUMPUR: The 1Malaysia Development Bhd (1MDB) trial hots up again with a key witness taking the stand recounting the early days of 1MDB – or its earlier incarnation as Terengganu Investment Authority Bhd (TIA) – and the influence fugitive financier Low Taek Jho had over it.

Former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, 49, testified that Low, or better known as Jho Low, was responsible for nominating him as the CEO to TIA chairman, Sultan Mizan Zainal Abidin, who was then the Yang di-Pertuan Agong.

Shahrol, who worked with an IT firm then, had met Low in 2007.

“He was my client. He had asked for the firm to prepare an investment system for his company, ” he said.

Reading from his 270-page witness statement here yesterday, Shahrol said he still kept in touch with Low occasionally after the job ended.

At the end of 2008, Low contacted Shahrol and said he was managing a new state fund.

In March, 2009, Low invited him to join TIA, a sovereign wealth fund established for the economic development of Terengganu.

“On March 21,2009, Low asked me to go to Istana Terengganu at Jalan Kia Peng that afternoon. I realised he had nominated me as the CEO then, ” he added.

On March 23,2009, Shahrol was officially appointed by TIA through a director’s circular resolution.

The ninth witness said that from his own research, he found out that TIA was a RM2-company that was set up on Feb 27,2009.

TIA later changed its name to 1MDB in September of the same year, after a clause in the company’s constitution was changed.

Shahrol also spoke of how Low had direct access to Datuk Seri Najib Razak.

“I could see that he had direct access to Najib. For example, during TIA’s board of directors meetings, he contacted Najib directly to ask for his views and guidance (on matters discussed), ” he said.

Low had access to see Najib at both his private residence in Jalan Langgak Duta here and his official residence as the then-deputy prime minister at Sri Satria, Putrajaya.

(Najib was the deputy prime minister from January 2004 to April 2009.)

“For example, in March 2009, Low asked me to meet the CEO of Mubadala Petroleum at Najib’s official residence at Sri Satria. At that time, I saw clearly how Low had direct access to Najib, ” he said.

The witness also said he was certain that Najib gave Low the mandate to manage the operations of TIA through talking points and action plans.

“I saw him as a facilitator between Sultan Mizan and Najib.

“Yet, he was a person of interest to Najib (orang penting Najib) and always looked after Najib’s interests from the start, ” he said.

Despite having no formal power in the governance of TIA, Shahrol said Low was still able to influence decisions on an executive level.

“At the TIA level, I did see him play a big role as an adviser. When 1MDB operated, he had relayed the desires of Najib several times but because those were big decisions, I referred back to Najib in writing to confirm those orders.

“I find that the messages and orders relayed by Low to me were consistent with the feedback Najib gave

through meeting minutes as well as verbally, ” he said.

According to Shahrol, Low had never mentioned to him who appointed him (Low) to his “position” at TIA until April 8,2009, when TIA issued a formal resolution on Low’s appointment.

“Low himself told me that there must be a black and white (official appointment) from TIA to ensure that his role was transparent.

“But despite that, even before the official appointment was made, all of his actions and role was consistent with that of an adviser to both the Terengganu state government and the Federal Government.

“This means that the official appointment letter was just a formality because his role was executed since the beginning, even before I joined TIA, ” he added.