ISMEE Ismail resigned as a director and chairman of SRC International’s board in 2014 because of “governance issues” brought about by the actions of then CEO Nik Faisal Ariff Kamil, the Kuala Lumpur High Court heard today.
 
Ismee, who went to to become Tabung Haji CEO, said he tendered his resignation notice on May 6, 2014 and officially left the company on August 15, 2014. He said he was not active during the intervening months.

“I resigned because I did not agree with the manner in which SRC International was managed by the then CEO, Nik Faisal, especially regarding the company’s accounts and finances.”

Ismee said this today in Najib Razak’s trial for criminal breach of trust, money laundering and power abuse in 2014-2015 involving RM42 million of SRC International’s funds

Ismee, an accountant by profession, was appointed director with 1Malaysia Development Bhd in 2009. He, along with four others, was appointed to the board of directors of SRC International on August 1, 2011.

The other four were Nik Faisal, Suboh Yassin, Che Abdullah@Rashidi Che Omar and Shahrol Azral Ibrahim Halmi.

Ismee told the court today that he took umbrage at “many decisions” Nik Faisal undertook to make.

“Nik Faisal would table any sort of (investment) paper to the board of directors, which would take follow up actions for every single project undertaken by SRC.”

Ismee said he had raised governance issues on the day to day running of SRC International.

“Nik Faisal would always respond that the matter was approved by the ‘government’. In my opinion, the ‘government’ that was mentioned by Nik Faisal referred to Datuk Seri Najib.

“For SRC, any decision by the board of directors would need to get feedback from the SRC adviser emeritus, which is Datuk Seri Najib.

“If there was anything that needed Datuk Seri Najib’s attention, that would be undertaken by Nik Faisal only as he acts as the link between the board of SRC and Datuk Seri Najib.”

Ismee said only Nik Faisal would brief Najib on reports and decisions relating to SRC International.

Najib had ultimate power to “hire and fire” any of the board members, he said.

He also testified that it was Najib who acted as the signatory for the transfer of SRC International’s ownership from 1MDB to Ministry of Finance Inc.

Najib, 66, faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power. If convicted, he could be jailed up to 20 years.

He is represented by a dozen lawyers led by Muhammad Shafee Abdullah.

Attorney-General Tommy Thomas leads the prosecution, while justice Mohd Nazlan Mohd Ghazali presides over the trial. – June 10, 2019.