KUALA LUMPUR: Terengganu Investment Authority (TIA) had taken a RM70,000 loan from fugitive businessman Low Taek Jho or Jho Low in 2009 to increase its share capital to RM1 billion, the High Court heard.
Its former chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi said the money was paid directly into his personal account.
Shahrol was testifying as the ninth prosecution witness in Datuk Seri Najib Razak’s trial involving the misappropriation of RM2.3 billion funds from 1Malaysia Development Bhd (1MDB), formerly known as TIA.
During examination in chief by lead prosecutor Datuk Seri Gopal Sri Ram, Shahrol said Low gave TIA the money as the sovereign wealth fund was in the midst of obtaining a government guarantee to allow the issuance of an Islamic medium-term notes (IMTN) bond.
The witness said he had informed Low that TIA was in a state of emergency and needed more funds when the Penang-born businessman gave him the money.
Sri Ram: Was any money extended for this purpose?
Shahrol: Yes, RM70,000
Sri Ram: Did the company have RM70,000?
Shahrol: Not at that time.
Sri Ram: Where did the money come from?
Shahrol: Jho Low gave me the money.
Shahrol said RM70,000 was credited into his bank account via cash deposit, the day after he informed Low of the matter.
The money from Low was given to TIA in a form of director’s loan and later, the same amount was reimbursed after the company obtained proceeds from the issuance of the bond.
“I told Jho Low that I wanted to give the money back to him, but he said ‘later, later’… After a while, I stopped asking him and used the money for charity,” he said.
Shahrol said he utilised the money among others to sponsor orphans to watch an ‘Upin & Ipin’ musical theatre performance at Istana Budaya, here.
Earlier, the witness told the court that Low and TIA executive director Casey Tang had managed all the documents pertaining to the bond (IMTN) issuance worth RM5 billion.
He said both Low and Tang had directly dealt with AmInvestment Bank which was the main bank for the issuance of the bond.
Shahrol also testified that he informed Low as soon as he received feedback from the Ministry of Finance (MoF) on the status of the government guarantee for the IMTN as Low was an adviser to TIA.
Trial continues before judge Collin Lawrence Sequerah.
Najib, 66, is facing four charges of having used his position to obtain gratification totalling RM2.3 billion in 1MDB funds and 21 counts of money laundering involving the same money.