KUALA LUMPUR, Sept 24 (NNN-BERNAMA) — The High Court here today was told how Datuk Seri Najib Tun Razak had instructed for the agreement of a RM 5 billion bond sale by the Terengganu Investment Authority Berhad (TIA) to proceed despite a decree by the current Yang di-Pertuan Agong, Sultan Mizan Zainal Abidin back then for it to be suspended and its issuance postponed.
Former 1Malaysia Development Berhad (1MDB) chief executive officer, Datuk Shahrol Azral Ibrahim Halmi, 49, who was then TIA CEO, said after signing off Sultan Mizan’s resolution to suspend the Islamic Medium Term Notes (IMTN) agreement and to postpone its issuance, he went over to the former prime minister’s house in Jalan Langgak Duta, here on May 22, 2009 at about 8pm to inform him (Najib) about the matter.
“After signing off the resolution at the Istana Terengganu on May 22, 2009, on the same day, I called (TIA advisor) Jho Low (Low Taek Jho) and told him what had transpired… He was shocked, asked for some time to resolve the matter and said he would call me back, which he did after a while to tell me to go to the former premier’s house.
“At the same time, I telephoned Casey Tang (1MDB executive director) and informed him of the latest status and also asked him to discuss with Ambank if there was a need to suspend the IMTN.
“Casey told me that it was not possible (to suspend) as the agreement had been inked and that AmBank relationship manager Joanna Yu Ging Ping had also informed that a portion of the bond had already been purchased during the book building exercise and that suspending it would mean violating the agreement,” he testified during examination by lead prosecutor Datuk Seri Gopal Sri Ram.
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Shahrol Azral said upon reaching Najib’s house, Jho Low and Najib were already waiting for him at the living room and had appeared to have had discussions.
The prosecution’s ninth witness said he then informed Najib that Sultan Mizan had decreed for the bond to be suspended and how Ambank, on the other hand, was not in a position to allow that to happen as it would be a breach of the agreement signed a year earlier.
“Jho Low then informed me that because the IMTN was guaranteed by the Federal Government, a suspension at the end stages would lead to a loss of confidence among investors towards Malaysian-government issued bonds. Najib then asked me if I knew why His Royal Highness Tuanku was upset, to which I replied that I had no inkling whatsoever.
“Najib then asked if I had been given a copy of the resolution to which I replied that I wasn’t given one. He (Najib) then said something along the likes of ‘You go ahead, I will talk to Tuanku’ ”.
“I took that as a directive and mandate from the prime minister and in his capacity as Finance Minister to go ahead with the IMTN as he was the minister responsible in issuing the Government Guarantee. Jho Low was also privy to what Najib had instructed me to do, after which I went home while Jho Low remained there,” he said.
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Elaborating on the IMTN issuance, the witness said Jho Low and Casey had directly dealt with AmInvestment Bank as the ‘Lead Arranger’ and several consultants appointed to secure and close the IMTN agreement.
“The both of them (Jho Low and Casey Tang) were the ones who scrutinised and went over details in the agreements. I was not involved at this level as it was their field and expertise.
“Once the agreements had been drafted, Casey and AmInvesment Bank representatives brought them to me for signing. I believe all details had been agreed upon by all parties including the stakeholders (HRH Tuanku Mizan and Najib) as they had been scrutinised and checked by Jho Low and Casey Tang,” he said.
Shahrol Azral said he signed all documents pertaining to the agreement on the basis that he had been given the power and authority to do so by the TIA board of directors (BOD).
He said Sultan Mizan had also decreed the TIA Board to appoint his younger sibling, YAM Tengku Datuk Rahimah Almarhum Sultan Mahmud Al-Muktafi Billah Shah as a member of the board to represent the state of Terengganu’s interests.
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“The move was aimed at ensuring the IMTN agreement did not sideline Terengganu’s interests as the original purpose of TIA’s establishment was to serve as the state’s sovereign wealth fund,” he said.
Questioned by Sri Ram as to how he (Shahrol Azral) knew that Jho Low and the accused have had discussions when he was entering the house, the witness said he made that conclusion after Najib asked him why the Sultan was upset and whether he had a copy of the resolution.
Sri Ram: What was the atmosphere at the meeting? How do you describe it?
Shahrol Azral: I would say that it was neutral, I expected it to be more tense… Strangely it was neutral, although I envisaged it should be more tensed.
Sri Ram: Why were you expecting that?
Shahrol Azral: Because this was a big deal and this involved the sitting Yang di-Pertuan Agong and where we have a RM5 billion bond, which was the first ever Islamic 30-year bond issued by the government. So, as the Minister of Finance, I expected a lot more questioning.
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Sri Ram: Where was Jho Low when the accused said “go ahead, I will talk to Tuanku”?
Shahrol Azral: He was there, I did not notice if he said anything.
Sri Ram: Was there any conversation between Jho Low and the accused?
Shahrol Azral: I can’t recall.
Najib, 66, is facing four charges of having used his positions to obtain gratification totalling RM2.3 billion in 1MDB funds and 21 counts of money laundering involving the same money.
The Pekan MP allegedly committed the four offences at AmIslamic Bank Berhad, Jalan Raja Chulan branch, Bukit Ceylon here between Feb 24, 2011, and Dec 19, 2014, and the 21 charges, between March 22, 2013, and Aug 30, 2013, at the same place.
The trial before Justice Collin Lawrence Sequerah continues tomorrow.
— BERNAMA
