KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) former general counsel Jasmine Loo Ai Swan today detailed how the company was deceived into transferring US$576,943,490 into a bogus offshore company linked to fugitive businessman Low Taek Jho or Jho Low.
She said 1MDB via its subsidiary 1MDB Energy Limited entered into a joint venture agreement with Aabar Investment PJS Abu Dhabi and its parent company International Petroleum Investment Co (IPIC) in the energy sector.
She said Aabar Investment PJS Abu Dhabi chief executive officer (CEO) Mohamed Badawy Al Husseiny came to Kuala Lumpur to meet with her and 1MDB former CEO Datuk Shahrol Azral Ibrahim Halmi in April 2012.
"Badawy told me that he would meet with Datuk Seri Najib Razak together with Low.
"He also conveyed to me that all agreements to be made with 1MDB would be conducted through his company's subsidiary called Aabar Investment PJS Ltd.
"I requested from him documents to confirm that the said company was indeed a subsidiary for reference.
"Badawy then instructed me to contact Yvonne Seah from BSI Bank Singapore as she was the bank officer who assisted him in establishing the subsidiary.
"I have reviewed and obtained the relevant documents from Seah, which confirmed the matter," she said.
However, it was revealed during the trial that Aabar Investments PJS Ltd was a bogus entity set up by Low in Seychelles.
The legitimate entity which was supposed to get the funds was called Aabar Investment PJS, without the "Limited" or "Ltd" suffix.
The former lawyer said all Option Agreement and Collaboration Agreement for Credit Enhancement (CACE) that she provided refered to the contractual arrangement between 1MDB Energy Limited and the fake Aabar.
"I remember informing Terence Geh (1MDB former executive director) to be cautious because he was supposed to execute these agreements.
"I told him there were two companies with seemingly similar names," she said, adding that all documents for this joint venture were signed by Shahrol on May 21, 2012.
"Regarding the arrangement for remittance and payment of US$576,943,490 from 1MDB Energy Ltd to the fake Aabar, I never handled any remittance as it was the responsibility of the Finance Department led by Geh at that time," she added.
On April 18, 2022, 1MDB former chief financial officer Azmi Tahir previously testified that he did not check whether Aabar Investments PJS Ltd was the actual company that was supposed to receive the 1MDB funds.
Azmi said he only knew about the fake company when he was investigated by the Malaysian Anti-Corruption Commission (MACC).
Najib, 70, is facing four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount.
