FORMER SRC International CEO Nik Faisal Ariff Kamil was referring to Najib Razak each time he said there was a “higher-up” who wanted major proposals or transactions expedited, the court heard today.  

Suboh Md Yassin told Kuala Lumpur High Court today that he served as director at SRC International from 2011 to 2015 but he was unable to make any decision as all matters were brought to Najib by Nik Faisal.

An example of this, he said,  was the board’s expedition of a RM250 million grant to Ihsan Perdana Sdn Bhd, which was appointed on September 3, 2014 to carry out SRC international’s corporate social responsibility programmes.

Suboh said the SRC International board first ventured into CSR when Nik Faisal proposed that the government entity assisted flood victims on the east coast.

Nik Faisal had urged to board to expedite approval of a grant so as to render assistance as soon as possible. 

“In my opinion, the grant of RM250 million was very big and should have gone through normal procedures to obtain the written approval, which is the board of directors resolution.

“I raised questions about company rules and issues relating to compliance because the RM250 million involved the use of SRC International funds.

“Nik Faisal said, ‘it will be taken care of’ and added that the matter has been approved by ‘pihak atas’ (higher-up).

“In my opinion, ‘pihak atas’, as mentioned by Nik Faisal, was a reference to Datuk Seri Najib, who was adviser emeritus to SRC.

“Therefore, I kept quiet and the matter was not discussed again,” Suboh said.

Ihsan Perdana’s appointment letter was signed off by Suboh, Nik Faisal and Ihsan Perdana managing director Dr Shamsul Anwar. It stipulated that CSR activities needed to be reported to SRC International.

“However, as far as I know, Ihsan Perdana never informed (the board) on how the RM250 million was spent. I don’t know if there is any money remaining that could be returned to SRC International,” said Suboh. 

In his testimony on May 15, Dr Shamsul had said Ihsan Perdana never received the promised RM250 million.

Suboh maintained that Nik Faisal made the decisions in SRC International while he was asked to co-sign many documents. 

“This could be because I was not attached to other companies and was easily contactable compared to other directors,” he said. 

“For SRC International, any decision by the board of directors needed the advice of the adviser emeritus, who is Datuk Seri Najib.

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

Nik Faisal heavily involved in SRC International’s loans 

He said Nik Faisal tabled the proposal for the first RM2 billion loan for SRC International on August 23, 2011. Nik Faisal said the loan will require a government guarantee, which the board supported.

Suboh said it was Nik Faisal who handled the application process for a loan from Retirement Fund Inc (KWAP).

The agreement was signed on August 26, 2011, whereby KWAP was represented by CEO Azian Mohd Noh and SRC International by Nik Faisal, he said.

The loan came in the form of an Islamic term financing facility for 10 years. A letter of guarantee for the loan was signed by then second finance minister Ahmad Husni Hanadziah, said Suboh.

He said the second loan application of RM2 billion was discussed by the SRC International board on February 14, 2012. The proposal was again tabled by Nik Faisal who assured the loan will be supported by a government guarantee. The board agreed to press ahead, Suboh said.

The second letter of guarantee, dated March 27, 2012, was signed by Najib in his capacity as finance minister.

Suboh said about 90% of the loan was to be invested by SRC International in various foreign portfolios.

The remaining RM400 million was kept in SRC International’s company account to pay for operational costs, he aid.  

Of the RM400 million, about RM40 million was to be used for the purchase of property that was later sold to SRC International subsidiary Gandingan Mentari Sdn Bhd, he said.

Suboh said Gandingan Mentari was formed in June 11, 2014 and that he and Nik Faisal were appointed to the board of directors on July 9, 2014.

He said Gandingan Mentari was created for the purposes of buying and selling property in the Bukit Jalil area.

He said SRC International was prevented by the Federal Territories Land Office when it wanted to sell land.

“SRC International was only allowed to sell land to its subsidiary, which was why Gandingan Mentari was formed,” Suboh said.

Suboh said he and Nik Faisal co-signed a bank form to open a company account with AmBank with the number 888-100-380694-8.

The 66-year-old Najib remained expressionless in the dock during Suboh’s testimony.

The former prime minister stands accused of criminal breach of trust, money-laundering and power  abuse, in relation to RM4 billion in loans issued to SRC International in 2011 and 2012, from which he is accused of receiving RM42 million in his personal accounts in 2014 and 2015.

Najib, 66, faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power.

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

Attorney-General Tommy Thomas leads the prosecution and Justice Mohd Nazlan Mohd Ghazali is the sitting judge. – June 20, 2019.