1MDB trial: Shahrol and Casey disobeyed the BoD’s instructions

(Malaysia Today) – An interesting new development surfaced at Najib Tun Razak’s trial today when Ismee Ismail told the court that former 1Malaysia Development Berhad (1MDB) CEO, Shahrol Azral Ibrahim Halmi, and Casey Tang Keng Chee, failed to comply with the Board of Directors’ (BoD) instructions.

Najib is on trial over the alleged misappropriation of more than RM2 billion of 1MDB’s funds.

Shahrol remitted USD700 million to Good Star, a company which belongs to Jho Low, and not to the correct entity that 1MDB entered into the joint venture agreement with.

Further to that, Shahrol opened the JV company’s bank account in JP Morgan in contravention to the BoD approval to open the account in BSI Bank.

Ismee told the court that Shahrol and Casey failed to brief the BoD about the investment agreement entered into between 1MDB and Good Star.

In fact, said Ismee, Shahrol has misled the BoD on several occasions such as on the issuance of the IMTN as well as the PSI 1MDB joint venture.

Ismee testified that Shahrol was reprimanded by the BoD for many of his transgressions.

Ismee further testified that during Shahrol’s tenure as the CEO, Shahrol would brief him together with Jasmine. Previously, Shahrol had denied he personally briefed the directors and instead shifted the blame to Jasmine.

Ismee agreed it is possible that Najib signed the shareholders resolution after seeing the DCR being signed by Lodin or Shahrol, or both.

The shareholders resolution signed by Najib made no reference to any Murabaha agreement, whereas the DCR made reference to the Murabaha — and this is misleading as Najib would not know the full picture in relation to the disposal of the 40% JV shares.