KUALA LUMPUR — Datuk Seri Najib Tun Razak instructed fugitive businessman Low Taek Jho, or Jho Low to change the authorised signatories in Terengganu Investment Authority Berhad (TIA)’s account to secure its RM5 billion Islamic medium term notes (IMTN).
Former 1Malaysia Development Berhad (1MDB) chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi, 49, who was also TIA ex-CEO told the High Court that the directive was made in a resolution issued by Najib through Jho Low.
Referring to ‘TIA Berhad Directors’ Resolution (DCR TIA)’ dated May 27, 2009, he said its purpose was to change authorised signatories in every document or matter involving TIA to protect the Federal Government’s interest as the IMTN in TIA’s account were under federal government guarantee.
“I and Tan Sri Ismee Ismail (then TIA director) signed the DCR on May 27, 2009,” he said, reading out his witness statement during the direct examination by deputy public prosecutor Datuk Seri Gopal Sri Ram on the 12th day of the former prime minister’s 1MDB trial.
The ninth prosecution witness said there was also a document from Menteri Besar Terengganu Incorporated (MBI) on a TIA resolution dated May 22, 2009 to suspend IMTN, which it supported.
“This showed that the conflict between MBI Terengganu and the Federal Government had not been fully settled,” Shahrol Azral pointed out.
Meanwhile, he said Sultan Terengganu Sultan Mizan Zainal Abidin’s sister, Tengku Datuk Rahimah binti Almarhum Sultan Mahmud Al-Muktafi Billah Shah had submitted a letter dated May 27, 2009 to TIA’s board of directors (BOD) stating her intention to quit as a board member.
“She also stated in the letter that she would not stake any claim or seek any form of compensation from Tia after quitting,” the witness said.
He said Tengku Rahimah’s resignation as a TIA director made him feel uneasy as the matter involved someone prominent, which prompted him to seek Jho Low’s views.
“Jho Low told me that Datuk Seri Najib would propose for the Federal Government to take over TIA because of the bond of RM5 billion which was under Federal Government guarantee.
“MOF Inc. would take over and pay for MBI Terengganu’s shares. This meant that TIA would be wholly-owned by MOF Inc. and its funds secured by the Federal Government,” he said.
Earlier, the key prosecution witness said he was the one who signed the letter for TIA dated May 27, 2009 to AmInvestment Bank.
“It was to direct AmInvestment Bank to continue with the issuance of IMTN. AmInvestment did so in response to the letter,” he said.
Shahrol Azral also told the court that he signed eight agreements for Murabahah Purchases between TIA and AmInvestment Bank Berhad dated May 26, 2009 involving IMTN totalling RM5 billion.
“I signed all the agreement documents in the space ‘for and on behalf of Terengganu Investment Authority Berhad’,” he added.
Najib, 66, faces four counts of abusing his position to corruptly obtain RM2.3 billion from 1MDB and 21 counts of money-laundering involving the same funds.
Trial continues before Justice Collin Lawrence Sequerah.
— BERNAMA
