Why put SRC under MOF Inc if Najib wanted to plunder, poses Najib's defence

The move to take SRC International Sdn Bhd out of 1MDB and place it under the Minister of Finance Incorporated (MOF Inc) was intended to provide better government oversight and not facilitate a cover-up as claimed by the prosecution.

Submitting for the defence in former prime minister Najib Abdul Razak's RM42 million SRC International graft case at the Kuala Lumpur High Court today, defence lawyer Farhan Read (above) said the move did not reflect the intentions of someone who wanted to steal public funds.

"If he (Najib) wanted to plunder funds from government-linked companies, the best thing is not to place more (government) control over them," he told the court.

Farhan said this then begs the question of how "placing additional controls (on SRC International) is in service of Najib's 'evil' schemes".

SRC International was moved from 1MDB to MOF Inc in February 2012 after it obtained an RM2 billion loan from the Retirement Fund Incorporated (Kwap). A month later, it got another RM2 billion loan from Kwap.

SRC then "invested" the proceed overseas, including in Switzerland, and the sum was subsequently unaccounted for.

Najib allegedly controlled MOF Inc by virtue of his position as finance minister at the time. He was also prime minister.

In 1MDB, was chairperson of the board of advisers and the company's memorandum and articles of association were allegedly amended to give Najib a say in the company's decisions.

Farhan cited witness testimony that by putting SRC under MOF Inc, it made SRC directly accountable to the government.

[More to follow] - Mkini