KUALA LUMPUR: The High Court here was told that the board of directors at SRC International Sdn Bhd had no clue that RM2bil in funds it obtained from the Retirement Fund Incorporated (KWAP) was wired into an unknown account.
Former board chairman Tan Sri Ismee Ismail testified that the then CEO, Nik Faisal Ariff Kamil, did not inform the board that he (Nik Faisal) had asked KWAP to draw down RM2bil into an AmBank account ending with the numbers 736.
Ismee said the board did not know that an account bearing the number was registered under the company’s name.
He was testifying in the corruption trial of former prime minister Datuk Seri Najib Razak, who is accused of seven charges relating to the misappropriation of RM42mil in SRC International funds yesterday.
In a cross-examination by Najib’s lawyer, Harvinderjit Singh, the witness agreed that the board was not told about the drawdown.
Harvinderjit: We are moving to a more serious transgression. The board was never told about the drawdown to move RM2bil to an account it was not even aware of.
Ismee: It appears so.
Harvinderjit pointed out that according to the AmBank account statement under the name SRC International for August 2011, RM2bil in four tranches of RM500mil each was credited into the said account on Aug 29, 2011.
“This is serious, that on the same day, the entire RM2bil was also debited out,” Harvinderjit said.
Ismee said the board had no control over the account as they were not aware of it.
Harvinder: And this 736 account, throughout the time you were a director, was never under the control of the board?
Harvinderjit: If the board didn’t know about it, it couldn’t be under the control of the board, correct?
The witness also agreed to Harvinderjit’s suggestion that by not disclosing the existence of the account, the board’s control of the account was effectively bypassed.
The court earlier heard testimonies that the AmBank account ending with the numbers 736 was opened in January 2011.
It has two persons named as its signatories, namely its then directors Nik Faisal Ariff Kamil and Vincent Koh Beng Huat.
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 was charged with three counts of money laundering involving the same RM42mil.
The hearing before Justice Mohd Nazlan Mohd Ghazali continues today.