Mastika Legenda deal a sham, ex-1MDB CEO tells court

KUALA LUMPUR: Datuk Seri Najib Abdul Razak yesterday returned to the High Court here for his 1Malaysia Development Bhd (1MDB) trial involving RM2.3 billion after his conviction on July 28.

The former prime minister was sentenced to 12 years’ jail and fined RM210 million after he was found guilty of all seven charges over the misappropriation of RM42 million of SRC International Sdn Bhd’s funds, a former subsidiary of 1MDB.

Najib, who was released on a RM2 million bail, wore a mask and so did his supporters during the trial.

Yesterday’s proceeding began with Najib’s lawyer, Wan Aizuddin Wan Mohammed, querying 1MDB’s former chief executive officer Datuk Shahrol Azral Ibrahim Halmi, 50.

After a number of questions on the acquisition of energy company, Mastika Lagenda Sdn Bhd by 1MDB, Shahrol Azral agreed to the suggestion by Wan Aizuddin that the (Mastika Lagenda) deal was just a sham to deceive the board of directors.

“At the material time (in 2012), I didn’t know but now in hindsight, yes,” said the witness.

Mastika Lagenda owned a 75% stake in Genting Sanyen Power Sdn Bhd, which was previously reported acquired by 1MDB after obtaining a blanket approval from Najib.

Wan Aizuddin contended that there was no written approval by the board of directors and Najib, who was then representing Minister of Finance Incorporated, told the witness to proceed with the acquisition of Mastika Lagenda and it was the same for the option offer to take up a 49% equity stake in 1MDB Energy Holdings Ltd, a subsidiary of 1MDB.

Najib faces four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering. – Bernama