KUALA LUMPUR: The High Court was told that most of the funds raised by 1Malaysia Development Bhd (1MDB) - which was intended for the development of two mega projects - was instead pumped to PetroSaudi International Ltd (PSI).
Former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, 49, testified that the plan was for 1MDB to raise RM5bil and RM10bil through bridging loan facilities for the Kuala Lumpur International Financial District (KLFID) (also known as Tun Razak Exchange or TRX) and Bandar Malaysia, a project located at the former Sungai Besi airport site.
Shahrol said 1MDB only raised RM1bil for the KLIFD project while the RM10bil was never raised.
The witness, who was under cross-examination by lead counsel Tan Sri Muhammad Shafee Abdullah at Datuk Seri Najib Razak’s 1MDB trial here on Monday (Nov 4), said only a small proportion from the loan was used for the project while the majority of it was channelled into PSI for additional charges from the Murabaha deal.
Shafee: Were the RM5bil and RM10bil in funds raised by 1MDB?
Shahrol: For the RM5bil, yes. The RM10bil, no.
Shafee: To finance what?
Shahrol: To finance these two projects, Sungai Besi (airport land development) and TRX.
Shafee: Was the RM5bil ever used for the project (TRX)?
Shahrol: Only a very tiny proportion was used for TRX if I recall correctly, although I would have to look at financial records. The money mostly went to PSI for additional tranches for the Murabaha agreement we spoke earlier.
When asked if the former premier had ever said he knew for a fact who specifically was the owner of PSI, the witness said "Najib never said that".
Shafee: As the prime minister at that time (Najib) in his capacity as a shareholder, you cannot expect him to do due diligence?
Shahrol: In general yes. But in this situation, in my perception, Najib was the one who has personally invested in this relationship, has met up with Prince Turki (of Saudi Arabia) on a holiday. I cannot say one way or the other if the prime minister would have the capacity to do due diligence.
The witness agreed when Shafee suggested that someone professional should have been tasked to do due diligence such as 1MDB itself.
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.
The hearing before Justice Collin Lawrence Sequerah resumes on Tuesday (Nov 5).
Former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, 49, testified that the plan was for 1MDB to raise RM5bil and RM10bil through bridging loan facilities for the Kuala Lumpur International Financial District (KLFID) (also known as Tun Razak Exchange or TRX) and Bandar Malaysia, a project located at the former Sungai Besi airport site.
Shahrol said 1MDB only raised RM1bil for the KLIFD project while the RM10bil was never raised.
The witness, who was under cross-examination by lead counsel Tan Sri Muhammad Shafee Abdullah at Datuk Seri Najib Razak’s 1MDB trial here on Monday (Nov 4), said only a small proportion from the loan was used for the project while the majority of it was channelled into PSI for additional charges from the Murabaha deal.
Shafee: Were the RM5bil and RM10bil in funds raised by 1MDB?
Shahrol: For the RM5bil, yes. The RM10bil, no.
Shafee: To finance what?
Shahrol: To finance these two projects, Sungai Besi (airport land development) and TRX.
Shafee: Was the RM5bil ever used for the project (TRX)?
Shahrol: Only a very tiny proportion was used for TRX if I recall correctly, although I would have to look at financial records. The money mostly went to PSI for additional tranches for the Murabaha agreement we spoke earlier.
When asked if the former premier had ever said he knew for a fact who specifically was the owner of PSI, the witness said "Najib never said that".
Shafee: As the prime minister at that time (Najib) in his capacity as a shareholder, you cannot expect him to do due diligence?
Shahrol: In general yes. But in this situation, in my perception, Najib was the one who has personally invested in this relationship, has met up with Prince Turki (of Saudi Arabia) on a holiday. I cannot say one way or the other if the prime minister would have the capacity to do due diligence.
The witness agreed when Shafee suggested that someone professional should have been tasked to do due diligence such as 1MDB itself.
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.
The hearing before Justice Collin Lawrence Sequerah resumes on Tuesday (Nov 5).
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