KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak had control in the management of SRC International Sdn Bhd after an amendment was made in the company’s articles of association, the High Court heard.
Article 117 was added into SRC International’s Memorandum and Articles of Association (M&A) that stated “the prime minister shall be appointed and hold office as adviser emeritus to the company”.
It further said the adviser emeritus shall advise the board of directors on material matters and matters of strategic interest to Malaysia.
The board, it said, shall give due consideration to and implement any advice of the adviser emeritus in the best interest of the company.
Former SRC International board chairman Tan Sri Ismee Ismail, 54, said the amendment indirectly gave power to Najib as the adviser emeritus to control the company.
“The implication from Article 117 is that SRC International must take the advice of the adviser emeritus in material and strategic matters of the company,” he said during examination-in-chief by Deputy Public Prosecutor Datuk Ishak Mohd Yusoff here yesterday.
The witness was testifying in the corruption trial of Najib.
He said he was not aware of why the amendment relating to Article 117 was made during the company’s extraordinary general meeting (EGM) on April 23, 2012.
Cross-examined by Najib’s lawyer Harvinderjit Singh, Ismee admitted that he did not see for himself that Najib signed the EGM’s meeting minutes to approve the amendment in the articles of association.
He said he depended entirely on the information given by former SRC International CEO Nik Faisal Ariff Kamil when the matter was reported to the board in a meeting on June 8, 2012.
Ismee also testified that the source of SRC International’s funds came from Retirement Fund Incorporated (KWAP) and a start-up grant from the government.
“The company received a loan of RM4bil from KWAP and RM20mil from the government. The funds were used for investment and working capital,” he said.
Najib is facing seven charges involving RM42mil in funds belonging to SRC International, formerly a subsidiary of 1Malaysia Development Bhd (1MDB).
On July 4 last year, Najib claimed trial to a charge of abuse of power and three counts of criminal breach of trust linked to the 1MDB scandal.
He allegedly misappropriated RM42mil in funds belonging to SRC International.
On Aug 8 last year, he appeared in court for the second time, and was charged with three counts of money laundering involving the same RM42mil.
The hearing before Justice Mohd Nazlan Mohd Ghazali continues.
We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon!