SRC board had no room to refuse Najib’s advice, High Court hears

KUALA LUMPUR, March 6 — The High Court here today heard that the board of directors of SRC International Sdn Bhd believed that instructions or advice from Datuk Seri Najib Razak were intended for the good of the country and in the best interests of the company.

The former SRC director, Tan Sri Ismee Ismail, 61, said this was because Najib held three roles namely Advisor Emeritus of SRC, prime minister and finance minister during the material time. 

He said this when queried by lawyer Lee Suan Cui at the trial of the RM42 million civil suit filed against Najib by SRC and its subsidiary, Gandingan Mentari Sdn Bhd.

Lee: In your witness statement, you also testified that SRC is a special purpose vehicle established to execute investments intended to be carried out by the government, correct? And that is also the specific reason why the board of directors would carry out the resolutions of the shareholder?

Ismee: Correct.

Ismee further agreed that he emphasised the three roles held by the defendant (Najib) because SRC’s Memorandum and Articles of Association (M&A) gave the highest authority to the roles of the Advisor Emeritus and the prime minister. 

He also confirmed that Article 117 of SRC’s M&A required the board to give due consideration to and implement any advice of the Advisor Emeritus, leaving no room for the directors to refuse such advice. 

Ismee also agreed with the lawyer that the directors of SRC would not be in a position to disregard such advice, as they did not hold executive positions in the government.

SRC and Gandingan Mentari, which filed the suit in 2021, are seeking a declaration that Najib is responsible for the funds totalling RM42 million and are seeking damages for alleged knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.

The trial before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on March 16. 

Najib is currently serving a jail sentence at Kajang Prison for seven charges related to the misappropriation of RM42 million from SRC funds. — Bernama