SRC trial: Nik Faisal emboldened as company CEO like he had a mountain behind him, says former director

KUALA LUMPUR, July 2 — A former SRC International Sdn Bhd director revealed in court how Nik Faisal Ariff Kamil was buoyed to make decisions as the company’s chief executive as he had the backing of someone ‘powerful’. 

Datuk Suboh Md Yassin, who was on SRC International’s board of directors during its formation in 2011, detailed how Nik Faisal had not only presented himself to the board as someone who dealt directly with Datuk Seri Najib Razak as the Advisor Emeritus but was always in the driving seat when it came to decision making. 

“He is emboldened by his position; one he is the CEO, a very powerful person, and number two, he is emboldened because he has somebody behind him, like a Chinese proverb, he has a mountain behind him. 

“He can brush us (directors) aside, reduce us to nothing,” said Suboh during his cross-examination by lawyer Harvinderjit Singh during Najib’s SRC International RM42 million trial. 

Suboh then agreed with Harvinderjit that the opinion of Nik Faisal was merely his own perception. 

Harvinderjit: As though he had a mountain behind him, this is your perception?

Suboh: Yes. 

Harvinderjit: Would you agree the emboldened-ness of Nik Faisal was something you perceived?

Suboh: Yes, (it is) something I perceive. 

When pressed further as to why the board had not questioned several key investment decisions vetoed by Nik Faisal, Suboh explained how he was made to understand the chief executive made these resolutions after holding high-level meetings with Najib. 

Harvinderjit: Your assumption that Nik Faisal was dealing with Datuk Seri Najib was based only on what Nik Faisal was representing to you and board, that he had conversations with Datuk Seri Najib?

Suboh: It is more than that. 

Harvinderjit: What else?

Suboh: It was also because from what I understand, he has had a high-level meeting with Datuk Seri Najib. 

Harvinderjit: This is based on what he told you?

Suboh: Yes, he told the board also that, out of that meeting there comes shareholder minutes. On the basis of the minutes, these are the things that need to be done. And we (directors) said how the board feels the drawdown (of funds) should be appropriate. He would answer “ah no, no.” The government has already agreed. 

Suboh later agreed that despite sighting the said meeting minutes, he had never questioned nor checked its authenticity with the shareholders themselves, or if the high-level meeting did indeed take place. 

Suboh, the 42nd witness in Najib’s trial, yesterday during his testimony agreed to the possibility that Nik Faisal may have forged his signature on bank documents. 

This was after he was shown transparencies of the hard and scanned copies of the bank documents, which showed identical signatures of Suboh despite the said documents being dated differently. 

Earlier today, during cross-examination by Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah, Suboh agreed that his statements to the Malaysian Anti Corruption Commission (MACC) last year had him informing them signatures appearing as his were not signed by him. 

He also agreed with Shafee that his statements had shown him highlighting to the MACC that signatures on Real Time Electronic Transfer of Funds and Securities (Rentas) fund transfer forms between SRC International and subsidiary companies Gandingan Menteri Sdn Bhd and Ihsan Perdana Sdn Bhd were not his although they were made to appear as such. 

Shafee: When you remember you didn’t transfer any such funds, was there an additional reason this was not your signature? Did you remember you never transferred such funds and this can help you to say this is not your signature?

Suboh: Yes.

Shafee: And you examined (the documents) and know it is not your signature?

Suboh: Yes.

Shafee: (reading from the statement) I was surprised and did not know why my signature had differed and do not know why my signature is there. The signatures are variant of your own signatures? 

Suboh: Correct. 

Najib is on trial for seven charges of abuse of position, criminal breach of trust and money-laundering over RM42 million of SRC International’s funds.

During the course of the trial, witnesses have testified that the Retirement Fund (Incorporated) disbursed a total of RM4 billion in loans in 2011 and 2012 to SRC International, with money allegedly flowing through other companies before being transferred into Najib’s accounts.

At the time of the first loan application, SRC International was the wholly-owned subsidiary of 1MDB which was owned by the Finance Ministry’s Minister of Finance Incorporated (MoF Inc); while SRC International was parked directly under MoF Inc by the time of the second loan application.

Najib’s trial resumes at 9am tomorrow before High Court Judge Mohd Nazlan Mohd Ghazali.