Najib’s 1MDB trial: PetroSaudi CEO received US$85mil commission for joint venture deal

KUALA LUMPUR: The High Court was told on Wednesday (Oct 30) that PetroSaudi International (PSI) CEO Tarek Obaid received a handsome US$85mil (RM356mil) in commission for the joint venture (JV) between PSI and 1Malaysia Development Bhd (1MDB).

The payment was channelled to Tarek's bank account from Good Star Ltd, a company that was initially said to be a subsidiary of PSI but later revealed to be owned by fugitive financier Low Taek Jho.

During cross-examination on Wednesday, former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, 49, was shown documents by lead counsel Tan Sri Muhammad Shafee Abdullah.

The ninth witness agreed that a name stated on the document was 'Tarek Essam Obaid', who received the credit from Good Star.

(On Sept 30,2009, a total of US$1bil (RM3.487bil) was transferred by 1MDB into two separate accounts, with US$300mil into the JV account 1MDB-PSI and US$700mil into Good Star.

Shafee: Within five days Tarek got paid US$85mil from Good Star.

Shahrol: Yes.

Shafee: So this Tarek Essam Obaid is the same Tarek Obaid (of PSI)?

Shahrol: As far as I know, yes.

Shafee: The money went to Good Star and Good Star paid Tarek.

Shahrol: I don’t know why.

Shafee then showed the witness more documents and said they ought to “clear it out and settle it once and for all”.

The document was a JP Morgan application form to open a bank account for an individual.

Shafee: Please tell the court the name on the document.

Shahrol: It is Tarek Obaid.

Shafee: Based on bank statements, Tarek was paid US$85mil out of the US$700mil from Good Star for a commission as part of the JV deal between 1MDB and PSI.

Shahrol: Yes. The JV is the 1MDB-PSI deal.

Shafee: The reason Tarek was paid 85mil out of the 700 was because of commission.

Shahrol: Yes.

Shafee: So our money, US$700mil went there (to Good Star). US$85mil, this Tarek swiped as commission or purported commission... Can this be a bona fide commission or is this outright stealing?

Shahrol: Not enough information to determine that.

Shafee: You are an engineer. How much is the percentage?

Shahrol: Slightly over 10%.

Shafee: That's a lot for a commission for a JV.

Shahrol: Yes.

Shafee: Did he declare that he made this money from that deal?

Shahrol: No he didn't.

Datuk Seri Najib Razak, 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.

The hearing before Justice Collin Lawrence Sequerah continues on Thursday (Oct 31).