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PUTRAJAYA: Datuk Seri Najib Razak's defence counsel in the 1Malaysia Development Berhard (1MDB) trial has argued that the company's senior management, specifically former chief executive officer Datuk Shahrol Azral Ibrahim Halmi, had acted improperly.
Lawyer Wan Azwan Aiman Wan Fakhruddin said that Shahrol Azral had done so by allegedly prioritising the instructions of fugitive financier Low Taek Jho (Jho Low) over the directives of the 1MDB board of directors.
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He further submitted that the prosecution was relying on Shahrol Azral's testimony despite his misconduct and compromised credibility as a witness.
He specifically contested the witness' claim that "everything had Najib's blessings", adding that it was based on hearsay from Jho Low.
He also said the alleged misconduct included withholding material information from the 1MDB board of directors and the Finance Minister, engaging in undisclosed correspondence with Jho Low, and formally approving minutes of meetings that, to his (Shahrol Azral's) knowledge, never took place.
"He took instructions directly from Jho Low through secret correspondence, which he later destroyed and left key negotiations with Goldman Sachs and International Petroleum Investment Co entirely to the fugitive businessman.
"Shahrol Azral also signed the agreement to raise US$1.75bil in indebtedness without reading the full document, relying only on the signing page," he told the High Court here on Friday (Oct 24).
Najib's trial for the alleged misappropriation of RM2.3bil in 1MDB funds is being heard before Justice Datuk Collin Lawrence Sequerah.
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Wan Azwan Aiman further submitted that another individual tied to Jho Low was 1MDB's former general counsel, Jasmine Loo Ai Swan, who was responsible for preparing the Circular Resolution for the Issuance of the US$1.75bil notes by 1MDB Energy (Langat) Limited for the purpose of funding the acquisition of Mastika Lagenda Sdn Bhd.
"Loo, as it turns out, was not the damsel in distress as she would like us to believe. She failed to conduct a simple corporate search on Petrosaudi International Ltd, showing that it was not an oversight on her part but an overt act.
"She is also a former fugitive who once fled to Myanmar and was supported by none other than Jho Low himself," he said, stressing that the extent to which these red flags concerning the prosecution's witnesses are ignored is deeply telling.
The defence is now advancing arguments regarding the second charge against Najib, pursuant to Section 23(1) of the Malaysian Anti-Corruption Commission Act 2009, accusing him of abusing his position to obtain a gratification of RM90,899,927.28.
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The alleged acts include approving the acquisition of Mastika Lagenda Sdn Bhd equity at an aggregate purchase price of up to RM2.75bil, and authorising 1MDB to issue a 10-year, US$1.75bil Structured Loan Note.
On May 6, Najib’s defence closed its case after calling 26 witnesses, and the court scheduled nine days beginning Oct 21 for oral submissions.
Najib, 72, faces four charges of using his position to obtain RM2.3bil in 1MDB funds as gratification at the AmIslamic Bank Berhad branch on Jalan Raja Chulan, Bukit Ceylon here between Feb 24, 2011, and Dec 19, 2014.
He was charged under Section 23(1) of the MACC Act and faces up to 20 years in prison and a fine of either five times the amount of the bribe or RM10,000, whichever is higher, if convicted.
The former prime minister is also accused of 21 counts of money laundering, allegedly committed at the same bank between March 22, 2013, and Aug 30, 2013.
These charges were brought under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, which provides for a maximum fine of RM5mil and imprisonment of up to five years, or both, upon conviction.
Najib has been serving his sentence at Kajang Prison since Aug 23, 2022, following his conviction for misappropriating RM42mil from SRC International Sdn Bhd.
The High Court initially sentenced him to 12 years in prison and fined him RM210mil, a decision which was subsequently upheld by the Court of Appeal and the Federal Court.
However, his petition for a royal pardon on Sept 2, 2022, resulted in the Pardons Board halving his prison sentence to six years and reducing his fine to RM50mil.
The hearing resumes on Monday (Oct 27). – Bernama
