My knowledge of PetroSaudi is only from documents, Jasmine Loo tells court

KUALA LUMPUR: A witness in Datuk Seri Najib Razak's 1Malaysia Development Bhd (1MDB) trial has told the High Court that her knowledge about PetroSaudi International (PSI) Ltd was only based on documents.

Former 1MDB general counsel Jasmine Loo said this when asked by Najib's lead counsel, Tan Sri Muhammad Shafee Abdullah, if PSI, a company with which 1MDB entered into a joint venture, was a sham company that did not exist.

Muhammad Shafee: What if I told you that PSI does not exist in Saudi (Arabia)? It is a sham (company).

Loo: I wouldn't know.

Muhammad Shafee: Don't you think you (as general counsel) need to know?

Loo: As far as I know, it existed.

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The 50th prosecution witness was queried on what she knew of the “sham company,” and she said her knowledge at that time was based on documents given to her, such as bank letters and oral information from former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi.

Muhammad Shafee: Was it the prime minister's job to determine if PSI exists in Saudi?

Loo: No.

Muhammad Shafee suggested that it was the job of Wong & Partners, the legal consultant for 1MDB – as well as Loo herself – to conduct due diligence on PSI before 1MDB entered into any dealings with them.

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Loo agreed to the suggestion.

Previously, the court heard that 1MDB entered into a joint venture with PSI, with 1MDB injecting US$1bil in cash as starting capital.

However, US$700mil from the US$1bil was diverted to Good Star Ltd, a company linked to fugitive businessman Low Taek Jho, also known as Jho Low.

Najib, 70, is on trial for 25 charges in total – four for abuse of power that allegedly brought him the financial benefit to the tune of RM2.28bil; and 21 for money laundering involving the same amount of money.

The hearing continues before Justice Collin Lawrence Sequerah on Tuesday (April 2).