KUALA LUMPUR: The East-Coast Rail Link (ECRL), Trans-Sabah Gas Pipeline (TSGP) and Multi-Product Pipeline (MPP) were projects proposed to China to bail out debt-ridden 1Malaysia Development Bhd (1MDB) and its former subsidiary, SRC International Sdn Bhd.
The High Court was told today that Datuk Seri Najib Razak and fugitive financier Low Taek Jho, better known as Jho Low, had planned to get Chinese government-linked companies (GLCs) to invest in the projects, thus taking up 1MDB and SRC International’s debts.
To this end, Najib sent Datuk Amhari Efendi Nazaruddin, who was then his special officer, to China on a secret mission.
Testifying in Najib’s 1MDB trial, Amhari said he was called to Najib’s residence in June 2016 and was told to carry out a “secret assignment” to confirm there was an understanding to increase bilateral relations and investments between both countries ahead of the premier’s visit to China.
The 43-year-old said Najib personally tasked him with the mission following the death of his principal private secretary Datuk Azlin Alias.
“Najib told me I would be heading to China alone, and Low Taek Jho, or Jho Low, would arrange for my trip,” he said on the fourth day of Najib’s 1MDB corruption trial.
Amhari said at that time, he felt stressed and even thought of quitting as he felt the tasks given to him were burdensome, especially after Azlin’s death.
“But I had to do it as Najib was my boss and he was the prime minister of Malaysia,” he said.
At the same time, Low was in contact with Amhari and emailed him instructions about the itinerary and agenda for discussions in China.
Amhari said that period was the toughest time of his career.
“I was worried I would be implicated in the plans of Najib and Jho Low if the trip to China was indeed meant to cover up the losses of 1MDB funds, and the repayment of International Petroleum Investment Company (IPIC) debt that involved misappropriation of 1MDB (funds) or the preparation of political funds.
“From the talking points in the email I received from Jho Low, I realised that the duo (Najib and Low) were planning to use agreements with Chinese GLCs to bail out 1MDB and SRC International Sdn Bhd.
“They would get the Chinese firms’ help to acquire shares and take on 1MDB’s and SRC International’s debts.”
Amhari said Low was also present during his meeting with officials from the Chinese GLC facilitator, the State-owned Assets Supervision and Administration Commission.
“I could not understand much of what was being discussed as the members conversed in Mandarin, but sometimes Jho Low would translate it for me.
“He was the one who did the talking and from what I understood, Najib had offered the state enterprises’ participation in Malaysian infrastructure projects.”
Amhari said Low had also recommended then 1MDB director Terrence Geh, also known as Heng, be appointed as the coordinator for the 1MDB/SRC debt resolution programme.
“Among the projects discussed with China to bail out 1MDB/SRC were the TSGP, MPP and ECRL.”
The cost of the ECRL project alone was set to hit RM66 billion. When Pakatan Harapan took over the government, it initially cancelled the project.
However, the government later renegotiated the deal and managed to bring costs down to RM44 billion.
Najib is facing four charges of having used his positions to obtain gratification totalling RM2.3 billion in 1MDB funds and 21 counts of money laundering involving the same money.
He is alleged to have committed the offences at AmIslamic Bank Bhd at No. 55, Jalan Raja Chulan, Bukit Ceylon here between Feb 24, 2011 and Dec 19, 2014. For the money laundering charges, Najib is alleged to have committed the offences at the same bank between March 22, 2013 and Aug 30, 2013.