Thursday 28 Mar 2024
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SINGAPORE (NOV 10): Former BSI banker for 1Malaysia Development Bhd (1MDB) Yeo Jiawei told the court here today that the first structure he did for the Malaysian sovereign wealth fund was for US$100 million for SRC International Ltd.

Testifying at his own trial, Yeo said the scheme devised was for SRC, then a subsidiary of 1MDB, to invest in a fiduciary fund called Enterprise Emerging Market Fund (EEMF).

He explained that a fiduciary fund was one where the client, in this case SRC, will direct the manager of the fund on what to do with the money invested.

He told the court that SRC asked that EEMF extend a loan of US$100 million to a company called Blackstone whose beneficiary owner is Eric Tan Kim Loong, an associate of Low Taek Jho or Jho Low.

Yeo, who is facing money laundering and tampering of evidence charges, said he had raised his concerns to his bosses at BSI about the structure.

"I asked what if the investment became zero and what would happen?" he said.

SRC then gave an indemnity that shielded BSI from responsibility should all the money be lost.

After that first transaction, many more followed from 1MDB and SRC, Yeo said.

Yeo said his boss Kevin Swampillai had asked him to handle that transaction in December 2011 and that it was to be done on an urgent basis and that the client was very big and important.

He said that SRC and 1MDB were the clients of his colleague Yak Yew Chee and that he was just a support staff to execute what was decided by his bosses.

The trial continues tomorrow.

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