KUALA LUMPUR: Fugitive businessman Low Taek Jho was the “higher authority” in transactions involving Brazen Sky Ltd, a position above the then prime minister and finance minister, the High Court has heard.
Former BSI Bank wealth management services head Kevin Michael Swampillai, 59, said this was based on his observation that Low, also known as Jho Low, had greenlighted 1Malaysia Development Bhd’s (1MDB) US$2.3bil (RM10.2bil) offshore investment into Brazen Sky, a company set up to repatriate money belonging to 1MDB.
Swampillai said this during cross-examination in the RM2.28bil 1MDB trial involving former prime minister Datuk Seri Najib Razak, conducted by Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah here yesterday.
This was in contrast to the witness’ previous testimony, in which he assumed Najib would have known about the flow of funds transacted by 1MDB and three other companies (SRC International Sdn Bhd, Brazen Sky and Aabar BVI) through fiduciary funds.
Muhammad Shafee: Things at Brazen Sky cannot move unless the two directors (of 1MDB: Azmi Tahir and Terence Geh) say ‘yes’. But what you said here in your written witness statement was that Jho Low prevailed over them?
Swampillai: Yes.
Muhammad Shafee suggested that Swampillai had earlier said in his testimony that Najib was the “higher authority”, but with the particular transactions involving Brazen Sky, it appeared that Low “prevailed” over Azmi and Geh.
Swampillai answered “yes”.
Muhammad Shafee: So this is not a situation where the then prime minister and finance minister (Najib) prevailed over them?
Swampillai: Yes.
The 44th prosecution witness was also asked his opinion on bank practices regarding the Brazen Sky transaction.
Muhammad Shafee: I want to ask you this question as (you were) a senior member of the bank, BSI. From your experience, would it be prudent for a company to sign, considering a US$2.3bil in exchange for six promissory notes, from a company that was set up only a week ago with a paid-up capital of US$100?
Swampillai: It’s a little difficult to respond to that because it depends on why they entered the transaction.
(A promissory note is a written agreement by a party to pay back a loan given by another party.)
Swampillai said the only reason such a structure was used was to produce a false valuation report on the value of the assets in such a transaction.
Muhammad Shafee: And this was, among other things, to avoid detection by the auditors?
Swampillai: Yes, that’s right.
Najib, 70, is facing four charges of abusing his position to obtain gratification totalling RM2.28bil in 1MDB funds and 21 counts of money laundering involving the same money.
The hearing continues before Justice Collin Lawrence Sequerah today.
