Najib gave order to issue IMTN despite Sultan's displeasure

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

KUALA LUMPUR: The former 1Malaysia Development Bhd (1MDB) CEO told the High Court that Datuk Seri Najib Razak had given him the order to proceed with the proposed issuance of Islamic Medium Term Notes (IMTN) from the Terengganu Investment Authority Bhd (TIA) despite the displeasure (murka) of its chairman Sultan Mizan Zainal Abidin.

Datuk Shahrol Azral Ibrahim Halmi, 49, testified that the former prime minister gave the mandate at a meeting at his residence in Jalan Langgak Duta here.

This was after Shahrol was called for a sudden audience before the then-Yang di-Pertuan Agong at Istana Terengganu at Jalan Kia Peng on May 22,2009, where His Royal Highness showed him a resolution and ordered him to sign it.

The ninth witness in the 1MDB trial said he was stunned and could tell that something was not right from the Sultan’s intonation.

“I read the resolution quickly and saw it was about the suspension of the IMTN issuance until the terms and conditions stated in the resolution are met, ” he said here on Tuesday (Sept 24).

Shahrol also said this was the first time he had knowledge that Terengganu had imposed conditions to the IMTN issuance as Low, who was the adviser and facilitator to Sultan Mizan and Najib, had never informed him of the conditions.

He said that he and former 1MDB director Tan Sri Ismee Ismail, who was also present then, signed a copy of the resolution and left the palace.

“We were not given a chance to explain, ” he added.

Shahrol then contacted Low, who told him to go to Najib’s house the same night.

At the same time, Shahrol also contacted former 1MDB executive director Tang Keng Chee (Casey Tang) to inform him of the status and asked him to discuss with AmBank about the suspension.

“Tang told me that the IMTN issuance could not be suspended as agreements had been signed, ” he added.

At Najib’s house, Shahrol said Low and Najib were already waiting for him.

“Najib asked me if I knew why the Sultan was displeased (murka). I said I did not know.

“He also asked if I had a copy of the resolution and I said no, ” he said.

According to Shahrol, Najib had told him “you go ahead, I will talk to Tuanku”.

“I took it as an order and mandate from the prime minister, who was also the finance minister, to proceed with the IMTN as he was the minister responsible in giving the government guarantee (GG).

“Low also heard the order. When I left the house, Low stayed behind, ” the witness said.

TIA was set up as a sovereign wealth fund on Feb 27,2009, and later changed its name to 1MDB on Sept 25 of the same year.

Najib, 66, faces 25 charges in total - four for abuse of power that allegedly brought him financial benefit to the tune of RM2.3bil; and 21 for money laundering involving the same amount of money.

He faces imprisonment of up to 20 years and a fine of up to five times the sum or value of the gratification or RM10,000, whichever is higher, if found guilty.

Shahrol will continue his testimony before Justice Collin Lawrence Sequerah tomorrow (Sept 25).