‘CEO paid US$85mil in commission’
PetroSaudi chief received money for joint venture between PSI and 1MDB, court told
KUALA LUMPUR: PetroSaudi International (PSI) chief executive officer Tarek Obaid was paid a handsome US$85mil in commission for the joint venture (JV) between PSI and 1Malaysia Development Bhd (1MDB), the High Court heard.
The payment was channelled to Tarek’s bank account from Good Star Ltd, a company initially said to be a subsidiary of PSI but later revealed to be owned by fugitive financier Low Taek Jho.
Former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, 49, who was shown documents by lead counsel Tan Sri Muhammad Shafee Abdullah during cross-examination here yesterday, agreed that one “Tarek Essam Obaid” received the credit from Good Star based on the paper.
On Sept 30, 2009, a total of US$1bil (RM3.487bil) was transferred by 1MDB into two separate accounts, with US$300mil into the JV account 1MDB-PSI and US$700mil into Good Star.
Shafee: Within five days Tarek got paid US$85mil from Good Star. Shahrol: Yes.
Shafee: So this Tarek Essam Obaid is the same Tarek Obaid (of PSI)?
Shahrol: As far as I know, yes. Shafee: The money went to Good Star and Good Star paid Tarek. Shahrol: I don’t know why. Shafee then showed the witness more documents and said they ought to “clear it out and settle it once and for all”.
The document was a JP Morgan application form to open a bank account for an individual.
Shafee: Please tell the court the name on the document. Shahrol: It is Tarek Obaid. Shafee: Based on the bank statement, Tarek was paid US$85mil out of US$700mil from Good Star for a commission as part of the JV deal between 1MDB and PSI.
Shahrol: Yes. The JV is the 1MDBPSI deal.
Shafee: The reason Tarek was paid US$85mil out of the US$700mil was because of commission. Shahrol: Yes.
Shafee: So our money, US$700mil went there (to Good Star). US$85mil, this Tarek swiped as commission or purported commission ... Can this be a bona fide commission or is this outright stealing?
Shahrol: Not enough information to determine that.
Shafee: You are an engineer. How much is the percentage? Shahrol: Slightly over 10%. Shafee: That’s a lot for a commission for a JV.
Shahrol: Yes.
Shafee: Did he declare that he made this money from that deal? Shahrol: No he didn’t.
The ninth witness also agreed with Shafee that Tarek had shared a portion of the US$85mil with PSI director Patrick Mahoney.
Based on banking documents, Shafee suggested that Tarek had transferred US$33mil to a bank account belonging to Mahoney on
Oct 20, 2009, about two weeks from the date Tarek received his money.
Shafee (referring to the document): This time Tarek made the disbursement payment. Please read.
Shahrol (reading): ‘Transfer to Patrick Mahoney. US$33mil.’
Shafee: Christmas came a bit early that year. Did you know about this?
Shahrol: I didn’t know. Datuk Seri Najib Razak, 66, faces 25 charges in total – four for abuse of power that allegedly brought him the financial benefit to the tune of RM2.3bil; and 21 for money laundering involving the same amount of money.
The hearing before Justice Collin Lawrence Sequerah continues today.