PUTRAJAYA: A sum of US$700mil was transferred out of 1Malaysia Development Bhd (1MDB) to Good Star Ltd – a company belonging to fugitive Jho Low – without the approval of 1MDB’s board of directors, the High Court was told.
Former investigating officer Senior Asst Comm R. Rajagopal said he found this out during his investigations into 1MDB.
“There was no directive from the board of directors for the US$700mil to enter Good Star’s account,” the now-retired Rajagopal said in the RM2.28bil corruption trial involving Datuk Seri Najib Razak yesterday.
“The remittance of the money to Good Star went against the board’s decision,” he said under examination-in-chief by Najib’s lawyer Wan Azwan Aiman Wan Fakhruddin.
Good Star was later discovered to be an offshore entity owned by fugitive businessman Low Taek Jho, better known as Jho Low.
1MDB had entered into a US$1bil joint venture with Petrosaudi International Limited (PSI) in 2009 but US$700mil from the US$1bil was diverted to Good Star.
The court had earlier heard testimony that Good Star was initially thought to be a subsidiary of PSI. However, it was later revealed that it was a company controlled by Low.
Najib’s defence team contended that Low was the mastermind behind 1MDB’s financial scandal.
On Oct 30 last year, the former prime minister 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.
