1MDB paid US$681 mln to another fake Aabar, Court told

The High Court today was told that the board of directors of the 1Malaysia Development Berhad (1MDB) was never briefed on the payments amounting to US$681 million made to a company called Aabar Investment PJS Ltd incorporated in Seychelles (Aabar Seychelles) in 2014.

Former 1MDB chief executive officer, Datuk Shahrol Azral Ibrahim Halmi, said the directors too did not give any consent for the payments to be issued from 1MDB Energy Holdings Limited to Aabar Seychelles.

The 49-year-old witness who has been on the witness stand since late last year, was being cross- examined by lawyer Wan Aizuddin Wan Mohammed at Datuk Seri Najib Tun Razak’s RM2.3 billion 1MDB graft trial.

He was asked whether he was familiar with another Aabar, which bore the same name as fugitive businessman, Low Taek Jho or Jho Low’s Aabar Investments PJS Ltd (BVI) (Aabar BVI).

It was previously revealed in court that Jho Low and his associates had incorporated Aabar BVI in British Virgin Islands to be similar to Aabar Investment PJS (Aabar Investment), which was the real subsidiary of International Petroleum Investment Company (IPIC).

Wan Aizuddin: As of right now, are you aware that there are two purported Aabar Investments PJS Ltd entities, one is (incorporated) in British Virgin Islands and another in Seychelles?

Shahrol Azral: I might have been shown the documents during the investigation.

Wan Aizuddin: You agree that it has nothing to do with the real Aabar (Aabar Investment)?

Shahrol Azral: I cannot comment on that.

During the first day of trial, the prosecution in its opening statement, contended that over US$175 million from the US$975 million bridging loan, was paid to Aabar BVI's bank account, allegedly as part of the sum to buy back the Aabar options for the purchase of two independent power producer (IPP) companies.

Meanwhile, US$681 million from the loan was deposited into the Aabar Seychelles account between Sept 3 and 30, 2014

Wan Aizuddin suggested that the proceeds from the loan were never paid to the real Aabar but instead it went into the Aabar Seychelles account.

However, Shahrol Azral said Mohd Hazem Abdul Rahman who was the CEO after him had represented to the 1MDB board of directors that the funds were used to pay back the Aabar options.

Wan Aizuddin: The proceeds of the loan was never paid to Aabar?

Shahrol Azral: As represented by Mohd Hazem, yes.

Wan Aizuddin: The money was in fact transferred in two tranches to Aabar Seychelles.

Shahrol Azral: Yes.

To another question by Wan Aizuddin, the witness said the decision to take up the loan was discussed among the shareholders and they went along with the refinancing direction.

“In 2014 and 2015, a lot of the decisions for the Aabar options and the IPIC guarantee were already made at the Prime Minister’s Office level,” Shahrol Azral said.

Wan Aizuddin: Would you agree with me that surely, the shareholder and chairman of the board of advisers (referring to Najib) would have only agreed to what was proposed by the management?

Shahrol Azral: I cannot comment (on this) as I have no knowledge of the discussions between the management and chairman of the board of advisers.

Wan Aizuddin: Would you agree with me that as a prudent businessman, rather than taking that loan, liquidating the assets was the better option?

Shahrol Azral: Yes, it would make a lot more sense to liquidate and pay for the Aabar options.

Najib, 67, faces four charges of using his position to obtain bribes totalling RM2.3 billion from the 1MDB funds and 21 charges of money laundering involving the same amount.

The trial before Justice Collin Lawrence Sequerah continues tomorrow.

-- BERNAMA