SRC BOD appointed to execute Najib's wishes - Ex-SRC director

KUALA LUMPUR - The High Court today was told that members of SRC International Sdn Bhd board of directors (BOD) were appointed to execute the wishes of the company's shareholder, former prime minister and finance minister Datuk Seri Najib Razak.

Former SRC International director Tan Sri Ismee Ismail, 59, said that typically, in the case of a newly incorporated company, the BOD is given a blank slate which allows the members to use their expertise and opinions to decide the company's direction and determine which government-to-government endeavours to pursue.

"The point I'm trying to say here is when we were appointed to this newly incorporated entity called SRC, we didn't get a piece of blank paper, saying "as board members, you tell us what to do with this company." That is not the scenario.

"In SRC, once you are appointed as a board member, you were told that these are the directions or wishes of the shareholder for the management to execute with the support from the BOD," said Ismee during cross-examination by Najib's counsel Muhammad Farhan Muhammad Shafee.

Ismee is testifying as a third-party respondent in SRC International’s US$1.18 billion civil suit against Najib and the former chief executive officer of the company, Nik Faisal Ariff Kamil, who is currently at large.

Najib, who was also the finance minister at the time, was SRC International’s sole shareholder by way of Minister of Finance (Incorporated).

Further questioned by Muhammad Farhan, Ismee said there was one instance where he was furious at Nik Faisal when he discovered the company did not file and submit SRC International accounts for the financial year 2013 ended March 31 to the Companies Commission of Malaysia (CCM), which was due in September 2012.

"There was one article from The Edge newspaper dated May 5, 2014, titled "SRC yet to file accounts or seek extension". When I discovered the article, I told Nik Faisal you should write a nasty reply to The Edge to rebut their article.

"However, Nik Faisal told me it was true SRC is yet to file (the account). At this point, I shouted at him and this was where I took my own personal effort to ensure the account was closed. He (Nik Faisal) gave comfort that everything was good. We didn’t expect him to be a liar," said Ismee.

Under the new management, SRC International filed the suit in May 2021 claiming that Najib had committed a breach of trust and abuse of power, personally benefited from the company’s funds and misappropriated the same.

SRC International previously removed five of its directors from the lawsuit including Ismee, retaining Najib as the sole defendant, however, the High Court later granted Najib permission to issue third-party notices against them.

The company is seeking a court declaration that Najib is responsible for the company's losses due to his breach of duties and trust and for him to compensate the RM42 million in losses they have incurred.

The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues on June 10. - BERNAMA