KUALA LUMPUR: SRC International Sdn Bhd chief executive officer (CEO) Nik Faisal Ariff Kamil never told the company board of directors that the first RM2 billion loan from Retirement Fund Incorporated (KWAP) was parked in the company’s second account.
Testifying as the prosecution’s 39th witness for a third day running at former Prime Minister Datuk Seri Najib Razak’s graft trial, the company ex-chairman and director Tan Sri Ismee Ismail said that the board also never knew that SRC International had a second account in Ambank.
The Kuala Lumpur High Court also heard today, Wednesday, June 12, 2019, that the second account, which ends with number 736, was registered under Nik Faisal, SRC director Datuk Suboh Md Yassin and another undisclosed person.
Ismee revealed before Judge Mohd Nazlan Mohd Ghazali on how the manipulative Nik Faisal hid several other vital information from the board.
He said the board never knew that the RM2 billion, which the first tranche of a RM4 billion loan given by KWAP, was deposited into and transferred out of the 736 account on the same day, August 29, 2011.
Testifying at the trial’s 23rd day, he revealed that Nik Faisal never briefed the board meeting on Sept 13, 2011 on details of the transactions.
SRC International was officially established on January 7, 2011 as a wholly owned subsidiary of IMalaysia Development Berhad (1MDB).
Nik Faisal was appointed by the 1Malaysia Development Berhad (1MDB) board of directors as SRC International director and CEO on August 2, 2011.
The government then had given SRC International a RM20 million grant as the company’s start-up capital, which was also parked in the 736 account.
Ismee testified that Nik Faisal had transferred out a sum of RM15 million of the grant within the same year and the board was kept in the dark over its details.
Yesterday Ismee said that the board never took the initiative to verify Nik Faisal’s frequent claims that he was in regular contact with Najib.
He told the court that the board was given the impression that Nik Faisal had always communicated with Najib on all company matters and that the ex-premier had actually endorsed many SRC International projects.
However, the 54-year-old witness said the board never once communicated with Najib directly or indirectly through the ex-premier’s close aides for verification over Nik Faisal’s claims.
Ismee quit his positions in SRC International on August 15, 2014 due to disagreement with Nik Faisal’s management style.
Citing examples, he testified that Nik Faisal Ariff Kamil had the tendency to lie, misrepresent facts and figures, and manipulate company’s accounts and financial statements.
Najib is currently facing 7 charges of abuse of power, criminal breach of trust and money-laundering pertaining to SRC International. – NTHQiBord, 12 Jun 2019.