The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 26th day today at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings.
KEY HIGHLIGHTS
- Board did not approve RM2b leaving SRC account - witness
- 'Board unaware of Nor Mohamed Yakcop's role in SRC'
- Ismee agrees directors didn't give mandate for RM2b guarantee
- Ex-PM enters the dock
Ismee agrees ex-director may be complicit with ex-CEO to defraud board
10.30am: Former SRC International chairperson Ismee Ismail agrees with the defence's contention that then company director Suboh Md Yassin may have been complicit with the company's then CEO Nik Faisal Ariff Kamil to defraud its board of directors (BOD) over a deal struck by Gandingan Mentari Sdn Bhd and Putra Perdana Construction Sdn Bhd.
During cross-examination, the 39th witness agrees with lawyer Harvinderjit Singh's contention regarding the BOD being kept in the dark over the deal where Gandingan Mentari would invest RM140 million with Putra Perdana Construction, for the latter to invest in South Africa.
The deal involved a 70/30 profit split between Gandingan Mentari and Putra Perdana Construction.
Harvinderjit: Suboh was not honest with the board, by looking at the signature (on documents). He was not honest with the board.
Ismee: He thought it was Gandingan Menteri.
Harvinderjit: Gandingan Mentari entered an agreement with Putra Perdana Construction as pseudo investment manager in mining South Africa, commit RM140 million to Putra Perdana Construction, and split 70/30 with Gandingan. This was not told to the board?
Ismee: Yes (agreeing).
Harvinderjit: It appears that Suboh was complicit with Nik Faisal.
Ismee: Yes.
The SRC International board was allegedly defrauded during its July 2014 meeting.
Ismee: Wtihout money trail, I can't say what happened to the RM4b
10.30am: Former chairperson of SRC International, Ismee Ismail, testifies that he cannot tell what happened to the RM4 billion that was loaned by the Retirement Fund Incorporated to the company in 2011 and 2012.
He tells the court that he would not be able to say for sure where the money, which was channelled to SRC International in two tranches, had gone without documents.
Harvinderjit Singh: You can't say what happen to money from KWAP... What happens to KWAP loan to SRC?
Ismee: Without any documentary evidence or money trail, I can't say for sure.
Board did not approve RM2b leaving SRC's account - witness
10.20am - Former SRC International chairperson Ismee Ismail agrees that the second RM2 billion tranche of the loan from Retirement Fund Inc (KWAP) – that was banked into the company's account on March 28, 2012 – went out later that month without the board's approval.
He is replying to the questions from defence lawyer Harvinderjit Singh (photo).
Harvinderjit: An entire RM2 billion from KWAP was credited into the account on March 28 (2012) and debited out of the account on March (not clear). The board did not approve of this.
Ismee: Yes.
Harvinderjit: The fact that the money came in and out, there is no complying with the board's mandate.
Ismee: Yes.
Harvinderjit: This is serious fraud.
Ismee: Yes.
Harvinderjit: There were (supposed to be) checks in place, the money in this account cannot be moved out unless a Group A authorised signatory (signed off on the transaction), but then how was the money transferred out? You cannot tell how?
Ismee: Yes.
'Board unaware of Nor Mohamed Yakcop's role in SRC'
9.50am - The board of SRC International was unaware of Nor Mohamed Yakcop's (photo) exact role in the company despite the former minister being involved in the RM2 billion loan from Retirement Fund Inc (KWAP).
Under cross-examination by defence lawyer Harvinderjit Singh, former SRC International chairperson Ismee Ismail that Nor Mohamed, who oversaw the Economic Planning Unit (EPU), was involved in several important in 2011 and 2012.
This includes the establishment of SRC International, and its change of ownership from 1MDB to Minister of Finance Inc.
Harvinderjit: So, to summarise, the decision made by the government to (give a) RM2 billion grant (was based on) a memorandum from the Treasury to Minister of Finance 2 (MOF2). And what the MOF2 minutes say is that 'setelah berbincang dengan pegawai MOF, memorandum ini disokong (After discussion with Finance Ministry officers, this memorandum is supported).' So on the face of this, the proposal for government grant comes from the Treasury. And approval for this sokongan (support) is from the EPU minister and the Finance Ministry. Correct?
Ismee: Yes.
Harvinderjit: And the board was not aware of what exactly Nor Mohamed's role was in SRC?
Ismee: Yes.
Former SRC chair agrees directors didn't give mandate for RM2b guarantee
9.37am: Former SRC International chairperson Ismee Ismail agrees with defence lawyer Harvinderjit Singh's assertion that the board did not issue a mandate for its then-director Nik Faisal Ariff Kamil to seek an RM2 billion guarantee from the government on Jan 31, 2012.
Harvinderjit: The (SRC International) board did not give mandate to Nik Faisal to issue the letter?
Ismee: As far as I could remember.
Harvinderjit: If the recipient, the Finance Ministry, went through the letter seeking RM2 billion government guarantee, the recipient would assume it went through the company's system (properly checked).
Ismee: That would be a reasonable assumption.
Retirement Fund Inc (KWAP) issued the second RM2 billion tranche of the loan to SRC International in March 2012.
Ex-PM enters the dock
9.09am - Najib enters the dock as proceedings begin, with former SRC International chairperson Ismee Ismail taking the stand to resume his cross-examination by lawyer Harvinderjit Singh.
9.07am - The accused, former premier Najib Abdul Razak, enters the Kuala Lumpur High Court and takes a seat at the front row of the public gallery.
Also seen are Attorney-General Tommy Thomas, who leads the prosecution team, and Najib's lead counsel Muhammad Shafee Abdullah, who heads the defence team.
The cross-examination of former SRC International chairperson Ismee Ismail will resume on the 26th day of former prime minister Najib Abdul Razak's RM42 million SRC International trial.
Since taking the stand last Monday, Ismee has been grilled by defence lawyer Harvinderjit Singh over then-SRC International director Nik Faisal Ariff Kamil allegedly misrepresentation the facts of the first RM2 billion tranche of the loan from Retirement Fund Inc (KWAP) to the board of directors.
On Friday, the 39th witness was asked whether Nik Faisal, who is now being sought by the authorities, had misrepresented the ownership transfer of SRC International from 1MDB to the Minister of Finance Inc in early 2012.
Harvinderjit focused on whether Nik Faisal had claimed that the transfer was greenlit by then-minister in the Prime Minister's Department overseeing the Economic Planning Unit (EPU), Nor Mohamed Yakcop.
Ismee was also questioned over first RM2 billion tranche of the loan, with RM1.8 billion sent out for overseas investment and RM200 million remaining in Malaysia.
However, based on other witness testimonies, the prosecution's case for Najib's alleged abuse of power, graft, and money laundering of RM42 million from SRC International only involves the second RM2 billion tranche of the loan in March 2012.
-Mkini
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