NAJIB Razak added a clause in SRC International’s constitution to make himself adviser emeritus, giving him effective control of the board, the court heard today. 

Former SRC International chairman Ismee Ismail told the Kuala Lumpur High Court that the amendment was tabled by the former prime minister in an extraordinary general meeting on April 23, 2012. 

Ismee said, however, that the board only learnt of the EGM nearly two months later, when it was briefed by SRC International CEO Nik Faisal Ariff Kamil on June 8, 2012. 

The amendment meant Najib had effective control over SRC International, which was by then owned by the Ministry of Finance (MoF). This also meant that Najib was the sole shareholder in his capacity as finance minister, Ismee said when examined by deputy public prosecutor Ishak Mohd Yusoff. 

The clause was added under Article 117 of SRC International’s memorandum and articles of association.

It read the prime minister shall be appointed and hold office as adviser emeritus to the company. 

It also said the adviser emeritus shall advise the board on material matters and matters of strategic interest to Malaysia, and the board shall give “due consideration to and implement any advice of the adviser emeritus in the best interest of the company”.

Ismee said Najib was able to control SRC International through its CEO. 

When cross-examined by defence counsel Harvinderjit Singh, Ismee said he did not know where the EGM was held.

He also conceded that the board did not need the prime minister to appoint directors, but added later the appointment was subject to Najib’s approval. 

Ownership of SRC International was transferred from 1Malaysia Development Bhd to MoF in February, 2012. Najib also chaired 1MDB’s advisory board. 

Earlier, Ismee told the court that Nik Faisal was appointed as a director at SRC International on Najib’s orders. 

During his cross-examination, Ismee said that the decision to appoint Nik Faisal came from 1MDB’s board of directors in August 2011. 

Ismee said 1MDB was a holding company of SRC International, and that he also served on 1MDB’s board of directors. 

“(Nik Faisal’s appointment) was a resolution by the board of 1MDB, upon receipt of a resolution from shareholders to appoint Nik Faisal as director of SRC,” Ismee said. 

SRC was later placed under the Minister of Finance Incorporated (MoF Inc) on February 14, 2012. 

Najib, who was finance minister at the time, also had direct control over MoF Inc. 

Nik Faisal, who was described as a vital “link” between SRC International and Najib, is being sought by the police and remains at large in Indonesia, according to reports.

Najib’s charges in this trial relate to a RM4 billion loan to SRC International made out in 2011 and 2012, for which he is accused of receiving RM42 million in his accounts in 2014 and 2015.

He faces three counts of criminal breach of trust, three counts of money laundering and one count of abuse of power.

Najib, 66, is represented by a dozen lawyers, led by Muhammad Shafee Abdullah. Attorney-General Tommy Thomas leads the prosecution. – June 11, 2019.