SRC approved RM250 million grant for 'CSR' programmes

NAJIB TRIAL | SRC International Sdn Bhd had issued a RM250 million grant for corporate social responsibility (CSR) programmes to Ihsan Perdana Sdn Bhd, the Kuala Lumpur High Court heard today.

Former SRC International director Suboh Md Yasin (photo, above) said Ihsan Perdana was appointed as its CSR partner in 2014, and he signed the appointment letter alongside SRC International CEO Nik Faisal Ariff Kamil.

"(The board) got to know about the CSR programme through Nik Faisal, who said the company should help flood victims in the East Coast.

"I raised questions on company rules and compliance matters because the RM250 million grant involved SRC funds.

"Nik Faisal said 'it will be taken care of' and the matter was agreed by 'pihak atas' (higher power). To me, 'pihak atas' referred to Najib Abdul Razak as SRC's advisor emeritus .

"Therefore, I kept quiet and the matter was not discussed again," he told the court, reading from his witness statement.

Suboh said the RM250 million was deposited into bank accounts held by Ihsan Perdana, or other accounts as required by the company.

However, according to Ihsan Perdana director Dr Shamsul Anwar Sulaiman's testimony on May 15, the company did not receive the RM250 million grant spelled out in the appointment letter.

SRC International was set up in 2011 as a 1MDB subsidiary with a RM20 million grant from the Economic Planning Unit. 

By 2012, it received a RM4 billion loan from Retirement Fund Incorporated.

The purpose of the company was to invest in strategic industries and in late 2015, SRC International had to be bailed out.

According to Suboh, Ihsan Perdana was obligated to return the balance of the grant upon expiry, but the company did not inform SRC International how the grant was utilised.

He said there were other instances where he raised compliance issues and was told by Nik Faisal that the matter was consented by "pihak atas".

Referring to a board meeting minutes dated Aug 23, 2011, Suboh said board member Shahrol Azral Ibrahim Halmi had suggested that the proposed investment in Abu Dhabi didn't have a "visibility target date" and "no clear vision".

"I supported Shahrol and suggested that 'appropriate due diligence be carried out'. However, to my knowledge, no action was taken," he said.

Citing another example, Suboh referred to meeting minutes for Sept 13, 2011, where he had warned about the risks of investing in Indonesia.

"I had warned at the meeting that the 'business landscape in Indonesia was different from Malaysia' and SRC needed to be careful in investing there.

"I said this because it was my responsibility as SRC director to ensure that SRC's money was invested properly," he added.  - Mkini