He said this in response to questions from the former prime minister’s lawyer, Wan Aizuddin Wan Mohammed, on 1MDB’s purchase of the 100% stake in Genting Sanyen’s holding company, Mastika Lagenda Sdn Bhd.
Aizuddin pointed out that Goldman Sachs had provided a 5.75% annual interest rate to subscribers who purchased 1MDB Energy Langat’s bonds.
1MDB Energy Langat was a subsidiary company set up in Labuan to buy Genting Sanyen’s shares.
Goldman was tasked to raise US$1.75 billion so 1MDB could purchase the power plant at a RM2.75 billion price tag.
Besides Genting Sanyen, 1MDB purchased tycoon Ananda Krishnan’s shares in Tanjong Energy Sdn Bhd for RM8.5 billion in the same year.
Aizuddin: Did Goldman Sachs provide any evidence or brief 1MDB directors on the fact that 5.75% was the best rate?
Shahrol: No.
Shahrol said the fundraising to purchase Genting Sanyen was “driven by the PMO (Prime Minister’s Office)”.
He said 1MDB’s then general counsel, Loo Ai Swan, and Goldman Sachs told them at the time that the deal had been decided at the “upper level”.
“We were going along with the decision,” he said.
Aizuddin then asked Shahrol why 1MDB needed to set up 1MDB Energy Limited in Labuan and whether he had raised doubts on the offshore company.
“The reason for setting up an offshore company in Labuan was because it would receive less scrutiny from BNM (Bank Negara Malaysia) and other agencies?” the lawyer asked.
Shahrol replied that the setting up of the subsidiary was recommended by Goldman Sachs and Loo.
“There was no reason to doubt Jasmin (Loo) and Goldman at that time as they prepared everything in order. And I do not agree with your point on less scrutiny from the government,” he said.
Shahrol denied he was part of the team comprising Goldman Sachs, Loo, former 1MDB deputy chief finance officer Geh Choh Heng and others to embezzle funds in 1MDB Energy Langat.
Najib faces 25 charges of abuse of power and money laundering over alleged 1MDB funds amounting to RM2.28 billion deposited in his AmBank accounts between February 2011 and December 2014.
The hearing before High Court judge Collin Lawrence Sequerah continues on Aug 3.
The trial is expected to run until Dec 17. It will resume on Jan 4, 2021 and go on until June 30.
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