SRC suit: Bank didn't check Jho Low's claim about acting for Najib - witness

 

A former banker with the shuttered Singaporean branch of BSI Bank has testified that his former employer never double-checked businessperson Low Taek Jho's (Jho Low) name-dropping claim involving former prime minister Najib Abdul Razak.

During today's Kuala Lumpur High Court hearing of SRC International's US$1.18 billion (RM5.5 billion) lawsuit against Najib, Kevin Swampillai said Low constantly name-dropped Najib when dealing with members of the bank's management.

During cross-examination by defendant Najib's lead counsel Muhammad Shafee Abdullah, the witness for plaintiff SRC said that Low made the association between himself and the former premier.

Low made it look like he was an adviser to Najib and that he was tasked with overseeing SRC's investments, Swampillai (above) told the court.

Shafee: This name-dropping was never checked by the bank?

Swampillai: Never.

Shafee: Name-dropping is quite a culture in Malaysia, there is a word for it, jual nama.

Swampillai: I am aware of it.

Shafee: Jual nama, if you do not check, you would assume a person is involved in a transaction, unless you counter-check.

Swampillai: Yes.

When Shafee asked whether nobody from the BSI Bank branch made queries on whether Najib or the Malaysian government greenlighted the billions of ringgit of funds going through the bank from SRC, Swampillai agreed.

Hearing before civil court judge Ahmad Fairuz Zainol Abidin resumes next Monday.

In 2017, Singapore's central bank, Monetary Authority of Singapore (MAS), ordered BSI Bank Limited to shut down in the island republic, in light of alleged serious breaches of anti-money laundering requirements, poor management oversight of the bank's operations and gross misconduct by some of the bank's staff.

On Oct 23 2020, MAS imposed a lifetime ban on Swampillai over the 1MDB affair.

According to MAS’ official web portal, Swampillai and his then subordinate, Yeo Jiawei, had channelled a portion of the fund management fees or “secret profits” - namely US$5 million (RM23.5 million) - to an entity beneficially owned by Swampillai, without BSI’s knowledge and authorisation.

The Singaporean authority contended that the secret profit was in relation to the duo having assisted 1MDB in restructuring several of its joint venture interests.

MAS also claimed that Swampillai “deliberately made misrepresentations to 1MDB’s auditors, KPMG Malaysia, in an attempt to improperly influence the outcome of an audit carried out by them on 1MDB’s fiduciary fund investments”, among other contentions.

Fraudulent breach of duties claim

In the lawsuit, SRC, a former subsidiary of sovereign wealth fund 1MDB, claimed Najib committed a fraudulent breach of duties as SRC’s then adviser emeritus. 1MDB is also fully owned by MOF Inc.

SRC’s allegations are linked to the RM4 billion in loans it received from KWAP between 2011 and 2012.

Najib is serving a six-year jail sentence and was also fined RM50 million, courtesy of a partial royal pardon that reduced the initial sentence of 12 years jail and RM210 million fine.

SRC was incorporated as a special purpose vehicle on Jan 7, 2011, to invest in conventional and renewable energy, natural resources, and the minerals sector.

Counsel Kwan Will Sen appeared for SRC. - Mkini