KUALA LUMPUR (Sept 30): The prosecution in the 1Malaysia Development Bhd-Tanore (1MDB-Tanore) trial is expected to continue asking former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi (pictured) about the second phase of the purported embezzlement of the sovereign wealth fund’s monies furing the takeover of independent power producers (IPP) such as like Tanjung Energy Holdings Sdn Bhd (TEHSB) from billionaire T Ananda Krishnan and Genting Sanyen Power Sdn Bhd from Genting Bhd during the ninth prosecution witness’ examination-in-chief today.
So far, Shahrol has testified that a price of RM10.6 billion was agreed upon to takeover TEHSB where slightly more than RM6 billion would be raised from local banks, while the remaining US$1.75 billion would be raised from bonds arranged by Goldman Sachs, with Abu Dhabi-based Aabar Investments and International Petroleum Internation Corporation (IPIC) guaranteeing the bonds.
However, after raising funds from the bonds, more than US$575 million was transferred as security deposits to Aabar Investments PJS Ltd (BVI), a company now known as the fake Aabar.
Shahrol, who has been on the witness stand for the fifth day, has so far testified on the PetroSaudi International Ltd (PSI) phase involving the theft of 1MDB funds, during which he told the court that out of the RM5 billion Islamic medium term notes (IMTN) raised for the fund, a total of US$1 billion (RM3.3 billion) was used for the joint venture with PSI.
However, only US$300 million was transferred to PSI while the remaining US$700 million was moved to Good Star Ltd, a company guised as an affiliate of PSI but was discovered to be controlled by fugitive businessman Low Taek Jho, who is better known as Jho Low.
Of the US$700 million, slightly more than US$10.17 million was shifted to film production company Red Granite Pictures, where Riza Shahriz Abdul Aziz, who is Najib's stepson, is the sole company director.
Shahrol claims that all the deals involving PSI and Aabar received the approval of Datuk Seri Najib Razak, the accused in the 1MDB-Tanore trial who was then the Prime Minister and Finance Minister.
Notably, he held the golden share in 1MDB by virtue of it being a company under the Minister of Finance Inc (MoF Inc).
As with PSI, Shahrol's testimony concerning the Aabar deal may also reveal funds being siphoned out of 1MDB.
The Edge is reporting the proceedings live.