I shouted at CEO due to unfiled financial reports: SRC ex-director

 

SRC International ex-director Ismee Ismail testified in court today that he shouted at his then-CEO when he found out the company did not file its financial statements for the year ending 2013.

He recalled his angry reaction towards Nik Faisal Ariff Kamil during today’s Kuala Lumpur High Court hearing of SRC’s US$1.18 billion lawsuit against former prime minister Najib Abdul Razak.

Ismee told the civil court that when he read an article by The Edge dated May 5, 2014, titled “SRC Yet to File Accounts or Seek Extension”, he asked Nik Faisal to write a rebuttal to the business publication.

“However, Nik Faisal later called back and said we (SRC) actually did not file (the financial statements).

“I shouted at him and I took my own personal effort to ensure the accounts were closed.

“The proof is in the pudding and he gave comfort that everything is good. We (SRC board of directors) did not realise that Nik Faisal was a liar,” he told civil court judge Ahmad Fairuz Zainol Abidin.

Ismee is a third party that the court allowed Najib to bring into the civil action to fully or partly reimburse the ex-finance minister should SRC win the lawsuit.

The 59-year-old was replying during cross-examination by Najib’s counsel Muhammad Farhan Muhammad Shafee.

Ismee was a director at SRC from 2011 to 2014.

SRC’s present civil action against Najib is linked to the alleged misappropriation of part of RM4 billion in loans (RM3.6 billion or US$1.18 billion in foreign exchange rates between 2011 and 2012) that the company received from Retirement Fund Incorporated (Kwap) between 2011 and 2012.

Kwap is a statutory body under the Finance Ministry while SRC is now wholly owned by the Ministry of Finance Incorporated (MOF Inc).

Najib, who was SRC’s adviser emeritus, is serving a six-year jail sentence and was fined RM50 million in a separate criminal court case involving RM42 million of funds from the company.

Multiple cases

Ismee was not only a prosecution witness in the RM42 million SRC corruption trial against Najib but was also relied on by prosecutors to testify against the ex-premier in the ongoing RM2.27 billion 1MDB power abuse and money laundering trial against Najib.

The authorities are still trying to track down Nik Faisal to assist in the criminal investigation into the wrongdoing at SRC.

Nik Faisal Ariff Kamil

The trial before Fairuz resumes on Monday next week.

Under its new management, SRC filed the suit in May 2021, alleging that Najib, as adviser emeritus of the plaintiff, had committed breach of trust and abuse of power, personally benefited from the company’s funds, and misappropriated billions of ringgit.

SRC is also seeking a court declaration that Najib is responsible for its losses due to a purported breach of duties and trust, and for the ex-premier to repay RM42 million.

The plaintiff is also seeking a court order for Najib to be made accountable for the former’s US$1.18 billion loss, as well as repay US$120 million of funds that allegedly flowed into the former premier’s bank account. - Mkini