SRC International was unlike any other Minister of Finance (Incorporated) company for it was under the control and direction of Najib Razak without accountability, lead prosecutor V. Sithambaram told the Court of Appeal today.

He highlighted testimonies by various finance ministry officials during the SRC trial at the Kuala Lumpur High Court on the peculiar operations of the former 1Malaysia Development Bhd (1MDB) subsidiary.

“Being a MOF Inc. company, SRC was supposed to be under the purview of the Ministry of Finance,” Sithambaram said in the prosecution’s submissions against the former prime minister and finance minister’s appeal against his graft conviction in the SRC case.

“The evidence of Fauziah Yaacob (the ministry’s former deputy secretary-general of treasury for investments) showed that SRC never reported to the ministry.

“Efforts to acquire input and information by (the ministry) fell on deaf ears,” Sithambaram said.

During the SRC trial at the Kuala Lumpur High Court, Fauziah said that 1MDB and SRC, its subsidiary, did not have any ministry representative among the companies’ decision-makers.

Even then, Minister of Finance II Ahmad Husni Hanadzlah was expressly instructed by Najib not to interfere in matters pertaining to 1MDB and SRC, Sithambaram added.

“Husni had suggested that he be allowed to check on the status of SRC’s funds that have been frozen by Swiss authorities but this was refused by the appellant.

“The appellant did not himself personally travel to Switzerland to repatriate the funds back to Malaysia.

“The appellant had acted for his own interest as he was never appointed to SRC to act in the interest of the government,” Sithambaram said.

Sithambaram said it was Najib who was instrumental in securing the RM4 billion loan to SRC and the government guarantees, which resulted in RM3.6 billion ending up in Switzerland. 

“It is submitted that the appellant only allowed SRC to deal with the Swiss authorities so that the appellant had control of the SRC funds.”

Letter for loan to Najib instead of KWAP

In another incident, the lawyer said a letter by SRC’s CEO Nik Faisal Ariff Kamil to apply for the Retirement Fund Inc (KWAP) loan was curiously addressed to Najib instead of KWAP.

“SRC did not go through the proper process of applying directly to KWAP as the lender. 

“SRC’s letter written directly to the ex-prime minister for the loan instead of KWAP showed that the loan approval was being secured with the help of the appellant.”

Sithambaram said the letter was later handed over to KWAP’s CEO Azian Mohd Noh by Najib.

“The approval of the loan was premeditated and sanctioned by the appellant as prime minister or finance minister even before KWAP had investigated the merits of SRC’s loan application.”

The prosecution said the totality of the evidence showed that Najib was indeed directing and instructing his subordinates to do as he wanted because Najib was their “ultimate boss”.

Najib was convicted on July 28 last year on one count of abuse of power, three counts of CBT, and three counts of money laundering in relation to RM42 million of funds from SRC.

He was sentenced to 12 years in jail and a fine of RM210 million. Currently, Najib is appealing against his conviction and jail sentence.

The prosecution will continue their submission tomorrow before a three-man bench chaired by Court of Appeal judge Abdul Karim Abdul Jalil.

The other judges are Vazeer Alam Mydin Meera and Has Zanah Mehat. – April 14, 2021.