KUALA LUMPUR (Oct 24): The cross-examination of the prosecution's ninth witness Datuk Shahrol Azral Ibrahim Halmi, a former chief executive officer of 1Malaysia Development Bhd (1MDB), enters its fourth week today -- the longest so far of all the witnesses.
Only two days of Shahrol's cross-examination was held last week to make way for the former Prime Minister Datuk Sri Najib Razak to attend the oral submission of the SRC trial. The defence and prosecution made their respective cases on the seven criminal charges over the embezzlement of RM42 million from 1MDB’s former unit SRC International Sdn Bhd last week.
Shahrol's fiduciary duty was the highlight during the cross examination by the lead defence counsel Tan Sri Muhammad Shafee Abdullah last week pointing out the fact tha the former CEO was noted to have bulldozed the joint venture (JV) deal between 1MDB and PetroSaudi International Ltd (PSI) despite many red flags raised leading up to the signing of the agreement.
The witness claimed to understand that his responsibilities as a CEO included protecting 1MDB’s interests in the US$1 billion investment. However, Shahrol said he was then under pressure to deliver Najib's wishes -- as conveyed by Low Taek Jho -- to execute the deal.
The arrangement for the proposed 40:60 JV between 1MDB and PSI, was that 1MDB would pump in US$1 billion cash and PSI inject hydrocarbon assets worth US$1.5 billion into the JV. Shahrol, surprisingly, was satisfied enough with only an internet search and “oral due diligence” on PSI.
Shahrol was also seemed to have blindly agreed to have a valuer which was appointed by PSI to do the valuation of the assets that were injected by the latter.
PSI’s excuse was that the valuer, Edward L Morse, was “familiar with the assets” and could complete the valuation in a shorter time. It was later revealed that the assets did not belong to PSI after all.
The hearing continues at 9am today before High Court Judge Justice Collin Lawrence Sequerah.
For the 1MDB-Tanore trial, Najib faces four charges for using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving RM4.3 billion.
The Edge is bringing the proceedings live.