This article first appeared in The Edge Financial Daily on October 9, 2019
KUALA LUMPUR: The defence in Datuk Seri Najib Razak’s 1Malaysia Development Bhd (1MDB) trial has revealed that Thailand-based Country Group Securities PCL, which was involved in the flipping of a RM5 billion Islamic Medium Term Notes (IMTN) issued by the fund in 2009, is linked to Tan Sri Larry Low Hock Peng — the father of fugitive businessman Low Taek Jho (Jho Low).
Former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi said he was unaware of the secondary subscription to the RM5 billion IMTN by Country Group and Aktis Capital Singapore Pte Ltd, owned by Jho Low.
He was testifying in the trial of former prime minister Najib, who is facing 25 counts of money laundering and abuse of power for allegedly misappropriating billions of ringgit in 1MDB funds.
Defence counsel Tan Sri Muhammad Shafee Abdullah yesterday showed Shahrol two secondary subscription agreements dated May 18, 2009, between AmBank and Aktis and Country Group, wherein the two companies committed to RM700 million and RM3.8 billion of the bonds respectively.
“This is not the first time you’ve heard of this company?” Muhammad Shafee asked Shahrol during cross-examination, referring to Aktis.
“I saw this name for the first time when I gave my statement to the Royal Malaysia Police in 2018. They asked me if I knew of this company, but I said I didn’t know. They explained to me that Jho Low was the beneficial owner,” replied Shahrol, adding that the police also mentioned Country Group at the time he gave his statement.
“Did they ask you who is behind Country Group?” asked Muhammad Shafee.
“Yes, but I didn’t know. If I recall correctly, they said it was Casey Tang,” said Shahrol.
“That is not entirely right, but they are in the same group. It’s actually Larry Low,” said the lawyer.
“Oh, that is Jho Low’s father. I was not aware of this,” said the witness.
Like his son, Larry Low has since fled the country. The government has seized RM48.9 million in assets from Larry Low under a civil forfeiture suit, as neither he nor his representatives showed up in court in July to stake a claim on the assets.
Muhammad Shafee also pointed out that the flipping of the bonds right under the nose of Terengganu Investment Authority (TIA) — the predecessor of 1MDB — allowed “Jho Low and his cronies” to pocket approximately RM494.62 million, with Country Group making off with RM420 million, and Aktis RM74.62 million.
The lawyer explained that the bonds were acquired by the two companies at a discount and were resold at full value to a Malaysian government entity, which he did not name. The lawyer also noted that on the same day on March 18, 2009 when the secondary agreements were signed, Jho Low’s Good Star Ltd was incorporated by its holding company, Smart Power Ltd, which was in turn incorporated in the Seychelles in 2005.
Earlier this year, The Edge Malaysia weekly reported that US$113.42 million of the funds received by Country Group was transmitted to Acme Time Pte Ltd’s RBS Coutts account in Singapore on the same day that the bonds were issued, and that a further sum of US$12.55 million was sent to the same company at a later date.
US investigators have determined that Acme Time’s account was controlled by Jho Low and his associate Eric Tan Kim Loong.