Sultan Mizan was furious over IMTN - Former 1MDB CEO

KUALA LUMPUR, Sept 24 -- Sultan Mizan Zainal Abidin was furious over Terengganu Investment Authority Berhad (TIA)’s application for issuance of Islamic Medium Term Notes (IMTN) totalling RM5 billion without fulfilling the conditions, the High Court here heard today.

Former chief executive officer (CEO) of 1Malaysia Development Berhad (1MDB) and TIA, Datuk Shahrol Azral Ibrahim Halmi, 49, said Sultan Mizan who was then the Yang di-Pertuan Agong later ordered that the IMTN  issuance be suspended and postponed until the terms in the resolution were complied with.

"On May 22, 2009, I received a surprise instruction from Tuanku Mizan to come to Istana Terengganu with Tan Sri Ismee Ismail (TIA director) to meet him as soon as possible. I went there immediately after Friday prayers.

"Upon arriving, Ismee and I were escorted to the conference room while Tuanku Mizan and Tengku Rahimah (Sultan Mizan's sister) subsequently came. 

“Tuanku Mizan showed the resolution document which was signed by Tengku Rahimah. As far as I can remember, His Majesty said: Please sign this resolution, you can read it, if you want."

"I was shocked and could feel that something was not right as Tuanku Mizan sounded angry. I looked at Ismee but did not say anything, although I was wondering why Tuanku was angry and wanted me to sign the resolution," said Shahrol Azral.

The witness said this while reading out his 270-page witness statement during the direct examination by deputy senior public prosecutor Datuk Seri Gopal Sri Ram on the 12th day of  former prime minister Datuk Seri Najib Tun Razak’s 1MDB trial.

Najib, 66, faces four charges of abusing his position to obtain gratification amounting to RM2.3 billion of 1MDB funds and 21 money laundering charges involving the same amount.

The ninth prosecution witness said he immediately read the resolution and found that it was about a directive to suspend issuance of IMTN until the terms of the resolution were met.

"I was shocked as Jho Low had earlier informed me that Tuanku Mizan had no objection to the IMTN.

“It was the first time that I heard from Tuanku Mizan about Terengganu having set terms for IMTN issuance as Jho Low as advisor and facilitator to Tuanku Mizan and Datuk Seri Najib, had never made the terms known," he said, adding that he and Ismee signed the resolution as instructed.

Shahrol Azral said he and Ismee did not get a copy of the resolution as there and then they were asked to leave the palace.

"We were not given the opportunity to offer an explanation even on the current status of the IMTN where an agreement had already been concluded.

"When I was at Istana Terengganu on May 22, 2009 with Ismee, Tengku Rahimah and Tuanku Mizan,  he (Tuanku Mizan) had used the phrase ‘unsavoury character’ but I was not sure as to whom the phrase was meant for.

“I did not know the actual cause of the dispute among the TIA stakeholders at that time,” he said.

During the proceedings last week, eighth witness, Datuk Amhari Efendi Nazaruddin, 43, who was Najib's former special officer, said Sultan Mizan considered Jho Low an unsavoury character who had misrepresented him.

Najib who is also Pekan MP,  allegedly committed the first four offences at AmIslamic Bank Berhad, Jalan Raja Chulan branch between Feb 24, 2011 and Dec 19, 2014, and the money laundering offences, at the same place between March 22, 2013 and Aug 30, 2013.

The hearing before Judge Collin Lawrence Sequerah continues.

-- BERNAMA