Former SRC Director Says Board Unaware of RM42 Million Transfer to Najib’s Account
KUALA LUMPUR — A former director of SRC International Sdn Bhd has told the High Court that he had no knowledge of the transfer of RM42 million from the company to the personal bank account of former prime minister Najib Razak.
The former director, Ismee Ismail, testified that the company’s board of directors was only responsible for approving shareholder resolutions and was not informed about specific transactions involving company funds.
He made the statement in his witness testimony during the civil trial involving a RM42 million lawsuit filed by SRC International and its subsidiary, Gandingan Mentari Sdn Bhd, against Najib at the Kuala Lumpur High Court.
The disputed funds are part of the RM123 million loan obtained by SRC from Kumpulan Wang Persaraan (Diperbadankan) (KWAP), which was later allegedly transferred into Najib’s personal account through the intermediary company Ihsan Perdana Sdn Bhd.
According to Ismee, he only became aware of the transaction after being contacted by authorities to assist with investigations into the KWAP loan.
He emphasised that during his tenure as a director of SRC, the board had never been informed about the RM42 million transfer.
Ismee also told the court that he resigned from his position as SRC director on August 15, 2014, while the alleged transfers took place between December 2014 and February 2015.
As a result, he maintained that he had no involvement in any matters related to the disputed transaction.
In his testimony, Ismee explained that he was also not involved in the initial application process for the KWAP loan obtained by SRC.
He said that when he first joined the board of directors, the loan application had already been submitted and approved.
Ismee added that Najib’s involvement in the matter was related to the government guarantee attached to the loan.
At the time, Najib was serving as both the Prime Minister and the Minister of Finance.
The loan provided by KWAP to SRC was backed by a government guarantee, making it a matter closely linked to government policy and oversight.
Ismee further told the court that, based on his understanding, the SRC board of directors could not make decisions that contradicted resolutions issued by the company’s shareholders.
He explained that these resolutions were not solely from Najib personally but also from Minister of Finance Incorporated, which represented the government’s interests.
Because of this structure, major decisions involving SRC were determined by its shareholders.
The board of directors, according to Ismee, would typically be presented with resolutions that had already been decided by the shareholders.
Their responsibility was mainly to approve those resolutions rather than initiate independent decisions.
Ismee also rejected claims made by Najib’s legal team suggesting that SRC’s board members should share liability for damages due to alleged breaches of fiduciary duty.
He said such allegations were baseless and unfair.
According to him, the board members acted in good faith and followed the decisions made by the company’s shareholders without any suspicion of wrongdoing.
At the time, SRC was understood to be operating as a special purpose vehicle intended to carry out investments that would benefit the country.
Ismee also stressed that after resigning from the company in 2014, he had no authority to oversee SRC’s administrative or business activities.
Therefore, any financial transactions that occurred after his resignation — including the alleged RM42 million transfer — were conducted without his knowledge or involvement.
SRC International and Gandingan Mentari filed the civil suit in 2021 seeking a court declaration that Najib is responsible for the RM42 million funds.
They are also seeking damages over allegations including knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.
The trial is being heard before High Court judge Raja Ahmad Mohzanuddin Shah Raja Mohzan and is scheduled to continue tomorrow.
-wilayah.com.my
