Najib had ultimate power in 1MDB decisions, court told

Former 1Malaysia Development Bhd (1MDB) president and CEO Datuk Shahrol Azral Ibrahim Halmi (left) walking to the High Court.

KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak had “ultimate power” in decisions involving the finances of 1Malaysia Development Bhd or its earlier entity, Terengganu Investment Authority Bhd (TIA).

Former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, 49, told the High Court that as the number one man in the country, Najib had the ultimate power to make decisions on big investments, funds and national policies.

“This is in accordance with Article 117 of the Memorandum and Articles of Association (M&A) which stated that any action must have written permission from the prime minister.

“At the level of the board of directors, we are subjected to always report and ask for the opinion and mandate from the prime minister before making any big decisions, ” he said.

Shahrol added that the power to appoint the board of directors (BOD) and the board of advisors (BOA) fell under the absolute power of the prime minister.

For decisions that needed immediate action, Shahrol said he would go to fugitive financier Low Taek Jho, who was the unofficial adviser of TIA and 1MDB for Low to obtain the advice of Najib.

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

Shahrol was in an examination-in-chief conducted by lead prosecutor Datuk Seri Gopal Sri Ram here on Tuesday (Sept 24).

Sri Ram had referred the witness to 1MDB’s M&A document which was amended during an extraordinary general meeting on Aug 11,2009.

The witness said the M&A was prepared based on a discussion by several individuals including himself and Low at the beginning of TIA.

The amendment in the document confirmed that the highest power in 1MDB was that of the prime minister, as well as the change in TIA’s ownership to the Federal Government through the Ministry of Finance Inc (MOF Inc).

“I remember Low (better known as Jho Low) ordered for the words “Federal Government of Malaysia” to be changed to “Prime Minister” in the amendment because Low said Najib wanted to make sure there was no ambiguity," he added.

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 on Wednesday (Sept 25).