PUTRAJAYA: Najib Razak had absolute power over SRC International Sdn Bhd, including over hiring and firing directors, as the company’s constitution allowed for that, the Court of Appeal heard today.
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Ad hoc prosecutor V Sithambaram said a provision in SRC’s memorandum and articles of association said nobody could be appointed director without the blessings of the then prime minister.
“The hiring and firing is with the prime minister and not the board,” Sithambaram said in his submission to detail the prosecution’s case in Najib’s appeal against his conviction and sentence on corruption charges involving SRC International funds.
The appeal is being heard by a three-member bench chaired by Abdul Karim Abdul Jalil.
Sithambaram said former SRC chairman Ismee Ismail and director Suboh Md Yassin had testified during the High Court trial on the power wielded by Najib.
“Our case of his (Najib’s) power is found in the SRC constitution although Najib’s legal team has taken the position that their client had no control of the company,” he said.
He said Najib was the “controlling mind” of the company in his capacity as the then prime minister, finance minister and adviser emeritus.
“The board acted on the instruction of Najib via (then) SRC CEO Nik Faisal Ariff Kamil who was the ‘mountain’ behind the accused,” he said.
Sithambaram said Najib was already involved in SRC as early as 2011 when the company was incorporated as a private limited company.
He said the company constitution stated that Najib must be referred to if certain key decisions were made.
The company first became a subsidiary of 1MDB and was later placed under the Ministry of Finance Incorporated.
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Sithambaram said Najib “rushed” everyone to obtain a RM4 billion loan from Retirement Fund Incorporated (KWAP) in 2011 and 2012.
The loan was to carry out and invest in projects associated with conventional and renewable energy resources, natural resources and minerals.
“However, for the next six or seven years, nothing happened. In fact, Najib never received or asked for any board minutes or annual general meeting reports,” he said.
He said the two government guarantees for the loans were also not tabled in Parliament.
Sithambaram said Najib had an interest in SRC when he chaired the Cabinet meetings to approve the two guarantees due to the position he held in the company.
“In fact, he was the ‘shadow director’ apart from other positions he held in relation to the company,” he said.
Najib, who is the Pekan MP, is accused of abusing his power as the prime minister by giving government guarantees on SRC International’s RM4 billion loan from KWAP.
He was also charged with three counts of criminal breach of trust and three money laundering charges in relation to RM42 million belonging to SRC International, a former unit of 1MDB.
In July last year, High Court judge Mohd Nazlan Mohd Ghazali sentenced him to 12 years’ jail and fined him RM210 million after finding him guilty of seven corruption charges in relation to the RM42 million belonging to SRC International.
The hearing continues.-FMT