Former 1MDB CEO Shahrol Azral Ibrahim Halmi said the board of the government-linked company had to write to the then prime minister and finance minister as his approval was vital.
Moreover, he said Najib was sole shareholder of 1MDB as the company came under the purview of Finance Minister Incorporated.
Shahrol said he wrote to Najib on Aug 2, 2012 for the company to obtain a loan of up to RM1 billion to partly finance the purchase of the plant.
“He replied to my letter the following day. This was because Najib and Jho Low (fugitive financier Low Taek Jho) were pressing for the deal to go through as soon as possible,” he said when examined by ad hoc prosecutor Gopal Sri Ram.
The prosecution is contending that Najib and Low worked hand in glove to siphon money from the state investor.
Shahrol, the ninth prosecution witness, said 1MDB took steps in rapid succession to buy Genting Sanyen at RM2.75 billion after successfully securing another power plant ,Tanjung Energy Holdings Sdn Bhd, for RM10.6 bllion .
Shahrol said 1MDB obtained a RM800 million loan from Affin Bank and another US$1.75 billion was raised with the help of Goldman Sachs by issuing bonds.
He said the total raised from the loan and bond issue amounted to about RM5 billion.
“After paying the RM2.75 billion to purchase Genting (Sanyen), 1MDB had a balance of about RM2 billon,” he said.
He said since the bond was guaranteed by International Petroleum Investment Company (IPIC), its subsidairy company, Aabar BVI Ltd, would be given the option to hold 49% share in the power plant.
Shahrol said 1MDB also paid a security deposit of US$790 million to IPIC, part of the money that went missing or was unaccounted for.
Najib is facing 25 charges of money laundering and abuse of power over alleged 1MDB funds in his AmBank accounts.
He is accused of abusing his position to obtain RM2.28 billion in bribes in February 2011 and December 2014.
He is also said to have transferred RM2.28 billion in illegal funds to his bank accounts and to have subsequently used the money.
The hearing before judge Collin Lawrence Sequerah continues.