KUALA LUMPUR: Datuk Seri Najib Razak today trained his guns on former Terengganu Investment Authority (TIA) chief executive Datuk Shahrol Azral Ibrahim Halmi, blaming the latter for issuing the company's RM5 billion Islamic Medium-Term Notes (IMTN) programme.
The former prime minister said on May 22, 2009, TIA's board of directors passed a resolution instructing Shahrol to suspend the IMTN's issuance as instructed by the then Yang di-Pertuan Agong Sultan Mizan Zainal Abidin.
Initially established in 2009 as an entity owned by the Terengganu government, TIA was later established as 1Malaysia Development Bhd (1MDB).
Najib said that Shahrol and former TIA board member Tan Sri Ismee Ismail had sought a meeting with him to discuss the latest resolution.
"During the meeting on May 22, 2009, Ismee began by briefing me on what had transpired at the palace earlier that day. He explained that Sultan Mizan, who is also the Sultan of Terengganu, had ordered the suspension of the IMTN issuance and had instructed both of them to sign the resolution formalising the suspension.
"Ismee also mentioned that all agreements related to the IMTN had already been executed, a fact confirmed by Shahrol, including the Agreement for the Federal Guarantee.
"I asked if they had explained to His Majesty the consequences of suspending the IMTN, and both of them replied that they had not. They had carried out His Majesty's order and signed the resolution," Najib said while testifying in his 1MDB corruption trial at the High Court today.
Najib also dismissed Shahrol's testimony as a prosecution witness, denying claims that he had said, "You go ahead, I will speak to His Majesty." He said that neither Shahrol nor Ismee appeared certain about how to handle the situation, and he was also unsure at the time.
"Due to this uncertainty, I did not offer any suggestions or advice on how to resolve the matter, as I needed time to process what I had been briefed on."
Najib also dismissed Shahrol's claims that fugitive businessman Low Taek Jho was present during the meeting held at his private residence in Jalan Langgak Duta.
"I recall clearly that Low was not present before or during my meeting with Shahrol and Ismee, a fact that was confirmed by the latter.
"It is apparent that Shahrol is attempting to place Low at my residence before his arrival and to imply that I was conferring with him (Low) to give the impression that we were conspiring to ensure the issuance of the IMTN.
"However, Shahrol's testimony supports that it was not me who was conspiring with Low to ensure the issuance of the IMTN but rather it was himself.
"After he met with Sultan Mizan, Shahrol immediately called Jho Low to brief him on what had transpired and sought advice on how to resolve the matter," he said, adding that at the time Shahrol proceeded with the issuance of the IMTN, TIA was still TIA, not 1MDB.
Najib said Shahrol for all intents and purposes then was answerable and accountable only to the king and Menteri Besar Terengganu Inc.
"Shahrol owed a fiduciary duty to the company and its interest," he added.
Najib, 71, faces 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.
The trial before presiding judge Datuk Collin Lawrence Sequerah continues.