KUALA LUMPUR — Nov. 7, 2019: 1Malaysia Development Berhad transferred US$1.83 billion by mistake to a company belonging to fugitive businessman Jho Low from 2009 to 2011 but yet its CEO didn’t think there was negligence on his part although there had been similar mistakes earlier.
The sum was said to have been siphoned off by Jho Low in the form of a Murabaha financing agreement totalling US$830 million and another US$700 million during the period of the failed joint venture between 1MDB and PetroSaudi International Ltd (PSI).
It was also revealed that in March 2010, the US$1 billion equity in the joint venture was converted into Islamic Murabaha notes, with 1MDB injecting a further US$500 million, of which some went to 1MDB non-executive director Patrick Mahony.
Former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi testified today that 1MDB had mistakenly sent to Jho Low’s Good Star company US$700 million in September 2009 via Deutsche Bank and US$330 million in May 2010 via AmBank.
The banks had queried 1MDB when they found out the account number provided for the transfers did not match the name of the beneficiary intended by 1MDB, which was supposed to be PetroSaudi International.
Shahrol replied to a query by lawyer Tan Sri Muhammad Shafee Abdullah that Jho Low insisted Good Star was in fact owned by PSI, when he asked Low after a news portal published articles regarding the company in 2015.
Shafee is representing former prime minister Datuk Seri Najib Razak who is facing 25 charges relating to RM2.3 billion of 1MDB money.
Hearing before Justice Collin Lawrence Sequerah continues on Monday.