Why did 1MDB transfer millions to Good Star without knowing its owner?

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1MDB's Transfers to Good Star: Unawareness of Ownership Amidst Investment Deals

1Malaysia Development Berhad (1MDB) transferred millions of US dollars to Good Star Limited without possessing knowledge of Low Taek Jho's ownership of the entity. This occurred despite 1MDB not having received any financial returns from a prior US$1 billion investment, a portion of which had been directed to Good Star. The funds were channelled from 1MDB to Good Star as part of investment initiatives involving PetroSaudi International Limited (PSI), identified as 1MDB's purported joint venture partner.
Initial Investment and Subsequent Transfers

On September 30, 2009, 1MDB transferred US$700 million to Good Star's RBS Coutts account, numbered 11116073. This transaction was part of an initial US$1 billion investment that yielded no financial returns for 1MDB. At the time of this substantial transfer, Low Taek Jho reportedly claimed that Good Star was a company affiliated with PSI. This initial investment, intended for a joint venture with PSI, saw funds being split, with US$300 million going to the joint venture firm's JP Morgan account and the remaining US$700 million to Good Star.
Deception Regarding Good Star's Ownership

Datuk Shahrol Azral Ibrahim Halmi, the former CEO of 1MDB, stated that 1MDB had no direct business dealings with Good Star during his tenure. He recounted that following media reports suggesting Low Taek Jho owned Good Star, he sought explanations from Low. Low reportedly assured Shahrol that Good Star was owned by PSI and promised a confirmatory letter. This assurance was further bolstered when PSI CEO Tarek Obaid sent Shahrol a letter on May 22, 2015, asserting Good Star's status as an affiliate or subsidiary of PSI.
Continued Transfers Based on Assumed Affiliation

Despite the lack of direct dealings, 1MDB made a further transfer of US$330 million to Good Star's RBS Coutts account on May 12, 2011, following a drawdown notice from PSI. A PSI official requested this transfer, presenting Good Star as a PSI affiliate. Shahrol indicated he was not suspicious and did not question the beneficiary account because the same name, Good Star Ltd, had been used in previous transactions without issue. However, a document presented in court later indicated Low Taek Jho as the beneficial owner of Good Star Limited, a fact Shahrol claimed he was unaware of during these dealings.
Lack of Due Diligence and Subsequent Approvals

The US$330 million transfer was made in four tranches between May and October 2011. Shahrol explained that the continued use of Good Star's account was based on the prior established name and the perceived affiliation with PSI. The approval for this additional loan of US$330 million to PSI, which was channelled through Good Star, was ultimately given by Najib Razak, who was the finance minister at the time, through Minister of Finance (MoF) Incorporated.

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Why did 1MDB transfer millions to Good Star without knowing its owner?

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