KUALA LUMPUR: The High Court here today was told that Datuk Seri Najib Abdul Razak and his family vacation on a yacht in 2009 turned into a discussion on diplomatic joint ventures that did not go through legal and formal channels, resulting in significant losses to the country.
Malaysian Anti-Corruption Commission (MACC) investigating officer Senior Superintendent Nur Aida Arifin said the meeting between an individual known as Prince Turki (who was said to be a Saudi Arabia royal family member) and PetroSaudi International Ltd (PSI) director Tarek Obaid and fugitive businessman Low Taek Jho or Jho Low during the trip confirmed that a purported government-to-government (G2G) discussion had taken place.
“The discussion also did not involve high-ranking government officials, even though the government had to bear the loans with the issuance of full guarantees.
“Datuk Seri Najib, as the prime minister, should have known that this kind of high-level G2G discussion must go through proper diplomatic channels, not merely informal discussions on a yacht,” said the 49th prosecution witness.
She said this when reading out her witness statement during examination-in-chief by deputy public prosecutor Mohd Mustaffa P Kunyalam in the corruption and money laundering case involving RM2.3 billion belonging to 1MDB filed against Najib.
In the meantime, Nur Aida said the appointment of Edward L. Morse as PSI’s asset appraiser was questionable because the PSI Asset Appraisal report was prepared in just eight days, despite the fact that the assets to be assessed were very large, namely between US$2.7 billion and US$4.5 billion.
“In fact, Datuk Seri Najib has directed Datuk Shahrol Azral Ibrahim Halmi (former 1MDB chief executive officer) not to assess PSI’s assets on the grounds of wanting to protect the good bilateral ties between Malaysia and Saudi Arabia in terms of politics and reputation.
“Datuk Seri Najib had used Jho Low and Datuk Shahrol Azral to pressure the 1MDB board of directors through its former chairman Tan Sri Mohd Bakke Salleh to follow instructions and recommendations in several actions and decisions related to the joint venture with PSI,” she said.
The witness added that the reason that was always given by Najib was to preserve the G2G relationship between the Malaysian and Saudi governments, which resulted in many decisions and approvals that were not in favour of 1MDB and the government.
The court was previously told that the 1MDB-PSI cooperation resulted in 1MDB injecting funds totaling US$1 billion as initial capital paid in cash; however, US$700 million of that sum was routed into Good Star Ltd, a company owned by Jho Low.
At the previous 1MDB trial, Shahrol Azral, who was also the ninth prosecution witness, said the joint-venture project between 1MDB and PSI came about and was discussed during Najib’s vacation in Southern France on board a yacht with Prince Turki in August 2009.
In May 2022, former special officer to Najib, Datuk Wan Ahmad Shihab Wan Ismail (the 16th prosecution witness), told the court that on the second or third day of sailing, the former prime minister informed him that a Saudi Prince in another yacht nearby was inviting Najib and his family for an evening drink on board his boat.
He said on arrival at the yacht, Najib was greeted by Prince Turki and a man who identified himself as Tarek Obaid.
Najib, 70, is facing four charges of using his position to obtain bribes amounting to RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount.
The trial before Justice Datuk Collin Lawrence Sequerah continues on Jan 8. -Bernama
