KUALA LUMPUR: The High Court today heard of a second bogus company which was set up as "Aabar Investments PJS Ltd" and it links to International Petroleum Investment Co (IPIC).
The name "Aabar Investments PJS Ltd" and which company was incorporated in Seychelles, had first cropped up during the trial of former prime minister Datuk Seri Najib Razak over the misappropriation of RM2.28 billion from 1Malaysia Development Bhd (1MDB).
The matter was raised by defence counsel Wan Aizuddin Wan Mohammed when he was cross-examining former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi on the remittance of US$223 million from 1MDB Energy Ltd to Aabar Investments PJS Ltd (BVI) (Aabar BVI).
The legitimate entity is named Aabar Investment PJS, without the "Limited" or "Ltd" suffix.
Wan Aizuddin: Was the 1MDB board of directors briefed about this remittance of US$223 million to Aabar BVI?
Shahrol: No, we were not.
It was previously revealed in court that Aabar BVI was not the subsidiary of IPIC.
Aabar BVI was a shell company incorporated by fugitive businessman Jho Low and his associates in the British Virgin Islands.
Wan Aizuddin: Are you aware that there are two Aabar Investments PJS Ltd entities, one (incorporated) in the British Virgin Islands and another in Seychelles?
Shahrol: I may have been shown the documents during investigations.
Wan Aizuddin: You agree that it has nothing to do with the real Aabar?
Shahrol: I cannot comment on that.
Wan Aizuddin then asked the ninth prosecution witness about US$975 million loans which were taken up by 1MDB Energy from Deutsche Bank.
He contended that the proceeds of the loan were not utilised to repay "Aabar Options".
To this, the Shahrol said his successor Mohd Hazem Abdul Rahman had represented to the board of directors the funds were used for that purpose.
1MDB had in 2014 proposed to have 1MDB Energy Group listed in Bursa Malaysia through the buy-back option of "Aabar Options".
Wan Aizuddin: The proceeds of the loan was never paid to Aabar?
Shahrol: As represented by Hazem, yes.
Wan Aizuddin: The money was transferred in two tranches to Aabar Seychelles?
Shahrol: Yes.
Shahrol also testified that 1MDB's decision to take up loans which he claimed in a form of refinancing was discussed by the shareholders and "that he had just gone along with it".
He added that a lot of decisions on the Aabar Options and the IPIC guarantee were already done at the Prime Minister's Office's level.
Wan Aizuddin: Would you agree that as a prudent businessman, rather than taking a loan, liquidating the asset was a better option?
Shahrol: Yes, it would make a lot more sense to liquidate and pay Aabar Options.
The trial continues before judge Collin Lawrence Sequerah tomorrow.
Najib, 67, is facing 25 counts of abuse of power and money laundering involving RM2.28 billion of 1MDB funds which were deposited into his accounts between 2011 and 2014.
