KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak, who was the sole shareholder of 1Malaysia Development Bhd (1MDB), never gave his written approval for the acquisition of energy company Genting Sanyen (M) Bhd by the sovereign wealth fund.
The matter was raised by counsel Wan Aizuddin Wan Mohammed when he was cross-examining prosecution witness, former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, during Najib's trial involving the misappropriation of RM2.28 billion from 1MDB.
In relation to this, Wan Aizuddin referred the witness to a document on a 1MDB Directors' Circular Resolution (DCR) to which the latter clarified that the Prime Minister's approval was not needed in the acquisition.
The approval was in line with Article 117 of the 1MDB Memorandum & Articles of Association (MAA), which states that the approval of the Prime Minister is needed in some of the company's decisions.
Shahrol further testified that the 1MDB board of directors had agreed to the Genting Sanyen deal and there was no need for a board meeting, and instead, the acquisition was passed through the 1MDB board through DCR.
He also agreed with the lawyer's contention that a board of directors meeting was never called in the acquisition of independent power producers by 1MDB, which were Genting Sanyen and Tanjong Energy Holdings Sdn Bhd.
Instead, the details of the acquisition were made known to the board through a DCR, he added.
This, Wan Aizuddin suggested, was done to avoid scrutiny from the board of directors to which the witness said he disagreed.
Wan Aizuddin: I put it to you the DCR was used instead of the full board of directors meeting because you intended to hoodwink them (board of directors).
Shahrol Azral: I disagree.
The ninth witness further testified that he was informed by the 1MDB general counsel (at that time), Jasmine Loo Ai Swan, that there was not enough time for the whole board of directors to be called in a meeting to further discuss the acquisition.
"I have no reason to be doubtful of the general counsel as the documents were already prepared by Jasmine together with Goldman Sachs (the investment firm appointed as adviser to 1MDB in the acquisition) and everything was in order," he said.
Shahrol had testified on Sept 30, last year, that the process of acquiring independent power producer Genting Sanyen, was executed by 1MDB after receiving approval from Najib, in his capacity as Finance Minister, representing Minister of Finance Incorporated in 2012.
The trial before judge Collin Lawrence Sequerah continues on Aug 3.
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.