SRC director may have worked with CEO to hoodwink BOD: Witness


SRC International Sdn Bhd former director Datuk Suboh Md Yassin might have been in cahoots with the company’s then chief executive officer Nik Faisal Ariff Kamil to hoodwink its board of directors (BoD), the High Court here heard today.

SRC BoD former chairman Tan Sri Ismee Ismail and the prosecution’s 39th witness in Datuk Seri Najib Tun Razak’s trial agreed with counsel Harvinderjit Singh’s suggestion that the board was not informed about the deal between Gandingan Mentari Sdn Bhd and Putra Perdana Construction Sdn Bhd.

According to the deal, Gandingan Mentari would fork out RM140 million for Putra Perdana Construction to invest in South Africa.

The lawyer noted that the deal involved a 70/30 profit split between Gandingan Mentari and Putra Perdana Construction.

Gandingan Mentari is a subsidiary of SRC International while Putra Perdana Construction is a subsidiary of Putrajaya Perdana Berhad.

Harvinderjit: Gandingan Mentari entered an agreement with Putra Perdana Construction as pseudo- investment manager in mining in South Africa, commit RM140 million to Putra Perdana Construction and split 70/30 with Gandingan. This was not told to the board?

Ismee: Yes.

Harvinderjit: It appears that Suboh was complicit with Nik Faisal? 

Ismee: Yes.

Harvinderjit: RM2 billion loan from the Retirement Fund Incorporated (KWAP) was credited into the account on March 28, 2012 and debited out of the account on March itself. The board did not approve of this?

Ismee: Yes.

Harvinderjit: The fact that the money came in and out, there is no complying with the board’s mandate.

Ismee: Yes.

Harvinderjit: There were (supposed to be) checks in place, the money in this account cannot be moved out unless a Group A authorised signatory (signed on the transaction), but then how was the money transferred out? You cannot tell how?

Ismee: Yes.

To another question, the witness said Nik Faisal did not brief SRC’s BoD over the government guarantee for the second RM2 billion loan from KWAP.

Ismee, 54, had been on the witness stand since last Tuesday.

Najib, 66, is charged with three counts of criminal breach of trust, one count of abusing his position  and three counts of money laundering involving SRC International Sdn Bhd funds amounting to RM42 million.

The hearing which entered its 26th day, continues before justice Mohd Nazlan Mohd Ghazali.