PUTRAJAYA (April 19): Former prime minister Datuk Seri Najib Razak was entrusted with full dominion over SRC International Sdn Bhd and was therefore responsible for the funds totalling RM4 billion from Retirement Fund Inc (KWAP), the prosecution submitted today.
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Ad hoc prosecutor Datuk V Sithambaram said at the Court of Appeal today that the former premier was an agent and a director of SRC, but pointed out that Najib did not act in the best interest of the shareholder of SRC, namely the Ministry of Finance (MoF) Inc, and so by extension the government of Malaysia.
Court of Appeal judge Justice Datuk Abdul Karim Abdul Jalil, who led the three-member bench, posed a question to the prosecutor on who then had dominion over the rest of the funds, if only RM42 million ended up in Najib’s personal accounts.
Sithambaram replied that as Najib was entrusted with dominion over SRC, therefore the RM4 billion funds were also his responsibility as they were under his control.
In his submission, Sithambaram said Najib had made incremental steps towards entrenching his position in SRC, entrusting himself with full control of the company, including its assets.
“SRC was formed with the approval of the appellant (Najib) and this in turn allowed his entrustment with dominion over the assets of SRC since its formation.
“These were deliberate and willful acts of the appellant,” he added.
The SRC funds of RM4 billion originated from two separate loans from KWAP in 2011 and 2012. The funds were initially intended to be utilised to develop national energy projects but were instead transferred out of the country almost immediately after they were disbursed.
Apart from the RM42 million that went into Najib’s personal accounts, the court was previously told during this appeal that “no one knows” what happened to the rest of it.
The prosecution today outlined that through the former premier’s instructions to SRC in the form of shareholder minutes, it could be seen that Najib had “enormous influence and an overarching position of power in SRC”.
Sithambaram said there is no evidence to prove that this assertion is false, and that this only fortifies the argument that the SRC board of directors (BOD) indeed followed Najib’s signed instructions.
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He claimed that it was more evident that Najib was acting in accordance with his own interest and not the government when he himself had signed all the shareholder instructions that were subsequently executed by the SRC BOD.
“RM42 million belonging to SRC were credited into his personal accounts which he then converted for his own use.
“The appellant (Najib) cannot plead ignorance of the transactions that had taken place in his accounts to avoid criminal liability.
“The responsibility for the activities in the personal accounts of the appellant always lies with the appellant,” he said.
Sithambaram added that evidence from both Tan Sri Ismee Ismail and Datuk Suboh Yassin, who were SRC chairman and director respectively, coincided to show that Najib had pushed certain articles to be added into the memorandum and articles of association in order to establish dominion over SRC from its initial formation.
He added that one of these said articles resulted in the appointment of the former premier as the advisor emeritus, prompting the SRC BOD to seek advice and also implement any advice of the advisor emeritus.
The SRC BOD were also led into following the “advice” from the former premier, as the memorandum and articles of association also provided Najib with the sole authority to hire and fire members of the board.
Najib’s cocktail of positions provided him enormous leverage where he could adapt and act in accordance to a certain position for his own gain, added the prosecutor.
At the time, Najib held the positions of prime minister, finance minister cum corporate representative on behalf of MoF Inc as the sole shareholder, and advisor emeritus of SRC.
The hearing continues.-The Edge Market