KUALA LUMPUR: The management of 1Malaysia Development Bhd (1MDB) had conned the company's board of directors (BOD) and former prime minister Datuk Seri Najib Razak into entering a joint venture with PetroSaudi International Ltd (PSI), the High Court heard on Wednesday (March 23).

       Lead counsel Tan Sri Muhammad Shafee Abdullah suggested this during cross-examination here to witness Tan Sri Ismee Ismail, who is a former 1MDB non-executive director.

       Muhammad Shafee said a group of senior 1MDB managers – Jasmine Loo Ai Swan (former general counsel), Azmi Tahir (former chief financial officer), Casey Tang Keng Chee (former executive director) and Datuk Shahrol Azral Ibrahim Halmi (former CEO) – did this by preparing detailed paperwork to enter into the investment agreement, to which he agreed.

       Comparing a prime minister and a BOD, the lawyer said a prime minister was alone with no resources to decide if what was represented before him during briefings was true or otherwise.

       Muhammad Shafee said a prime minister needs advisors like the BOD to advise him, to which Ismee agreed again.

       Ismee also agreed when it was suggested that Shahrol was one of the culprits working hand in hand with (fugitive financier) Low Taek Jho and misled the entire BOD.

       When asked if Najib was involved in the preparation of the documents to defraud 1MDB, Ismee said: "I don't think any prime minister has the time to do that."

       According to Muhammad Shafee, Shahrol had previously testified that he was ordered by Low, or better known as Jho Low, to prepare the document on the pretext that the instruction came from Najib.

       Ismee also told the court that he did not know if the briefing Najib received about the joint venture was the same briefing given to the BOD before the document was signed.

       In a previous testimony, the court was told that the 1MDB-PSI joint venture had left 1MDB with a huge US$700mil debt which was caused by funds transferred from 1MDB to Good Star Ltd, a company linked to Low.

       Shahrol testified that the 1MDB BOD had not known about a loan agreement signed by 1MDB-PSI on Sept 29, 2009, and that the BOD would not have approved the agreement otherwise.

       Najib, 69, faces 25 charges in total – four for abuse of power that allegedly brought him financial benefit to the tune of RM2.28bil; and 21 for money laundering involving the same amount of money.

       He faces imprisonment of up to 20 years and a fine of up to five times the sum or value of the gratification or RM10,000, whichever is higher, if found guilty.

       The hearing continues before Justice Collin Lawrence Sequerah Thursday (March 24).