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1MDB case: Company lost US$2.2 billion in deal

Shahrol didn't think that making a mistake in transferring huge sums of money to the wrong accounts a few times was being negligent.

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Written by Syndicated News

KUALA LUMPUR — Nov. 5, 2019: 1Malaysia Development Berhad ended up being paid once and only RM129 million by PetroSaudi International Limited (PSI) although it owed the former US$2.2 billion.

In the joint-venture that was signed in September 2009, 1MDB ended up putting up US$1 billion for a 40 per cent stake PetroSaudi Holdings Cayman (a company then said to be a subsidiary of PSI) injected assets worth US$108 million for a 60 per cent stake.

PSI paid the first profit payment to 1MDB in cash but no further payment was made from the second year.

When asked at the trial of former prime minister Datuk Seri Najib Razak today, former 1MDB CEO Datuk Shahrol Azral said the total indebtedness of PSI to 1MDB was around US$2.2 billion, including interest, as of 2015. Najib’s lead counsel is Tan Sri Muhammad Shafee Abdullah.

Najib faces 25 charges involving RM2.3 billion of 1MDB money.

According to Shahrol, PSI continued to use the 1MDB Petrosaudi Ltd. joint venture name even after it no longer had a stake in the company. 

Asked by Shafee why 1MDB allowed the name to be used by PSI, Shahrol replied that he was not aware because “the question just never came up”.

Shahrol disagreed with Shafee’s suggestion that he was part of a conspiracy to put Najib in a compromised position and that he was also not part of a conspiracy with fugitive businessman Jho Low and Nik Faisal Ariff Kamil, at that time 1MDB’s chief investment officer.

To another question, Shahrol admitted that Bank Negara Malaysia was not informed at a meeting in 2010 of the US$700 million remitted into Jho Low’s Good Star Ltd.

Hearing before Justice Collin Lawrence Sequerah continues tomorrow.

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