PUTRAJAYA: The High Court was told that a sum of US$700mil was transferred out of 1Malaysia Development Bhd (1MBD) to Good Star Ltd without the approval of the company's board of directors.
Former investigating officer Senior Asst Comm R Rajagopal, now retired, testified that the non-approval was one of his findings in his investigation into 1MDB.
"There was no directive from the (1MDB) board of directors for the US$700mil to enter Good Star's account.
"My investigation showed that the remittance of the monies into Good Star went against the board's decision," Rajagopal said at the RM2.28bil 1MDB trial involving Datuk Seri Najib Razak here on Thursday (March 13).
The witness was under an examination-in-chief by Najib's lawyer Wan Azwan Aiman Wan Fakhruddin.
Good Star, as it was later discovered, is an offshore entity owned by fugitive businessman Low Taek Jho or also known as Jho Low.
1MDB had entered into a US$1bil joint venture with Petrosaudi International Limited (PSI) in 2009.
US$700mil from the US$1bil was diverted to Good Star.
The court had earlier heard the testimony that Good Star was initially thought of as a subsidiary to PSI.
However, it was later revealed that Good Star was a company controlled by Low.
Najib's defence team contended that Low, who is still at large, is the mastermind behind 1MDB's financial scandal.
On Oct 30, last year, Najib was ordered by the High Court to enter his defence on four counts of using his position to obtain RM2.28bil gratification from 1MDB's funds and 21 counts of money laundering involving the same amount.
The hearing continues before Justice Collin Lawrence Sequerah on March 24.
