Najib-SRC Trial: SRC’s Board Never Verified Nik Faisal’s Claims Over Najib

SRC International Sdn Bhd’s board of directors had never sought to verify on whether its chief executive officer (CEO) Nik Faisal Ariff Kamil was acting as the company link with former-Prime Minister Datuk Seri Najib Abdul Razak.

SRC International’s former chairman and director Tan Sri Ismee Ismail told the Kuala Lumpur High Court today, Tuesday, June 11, 2019, that the company board never took the initiative to verify Nik Faisal’s frequent claims that he was in regular contact with Najib.

Testifying as the prosecution’s 39th witness for second day running at Najib’s trial, Ismee said Nik Faisal had always told the board that he was communicating with Najib on all SRC International matters.

He also testified Nik Faisal had given the impression that Najib was being briefed on all company matters and that the ex-premier had actually endorsed many SRC International projects.

However, the 54-year-old former SRC International’s chairman said the board never once communicated with Najib directly or indirectly through the ex-premier’s close aides for verification over Nik Faisal’s claims.

Yesterday Ismee testified that he quit his positions in SRC International on August 15, 2014 due to disagreement with Nik Faisal’s management style.

Citing examples, he testified that Nik Faisal Ariff Kamil had the tendency to lie, misrepresent facts and figures, and manipulate company’s accounts and financial statements.

Earlier today Ismee said that Najib appointed Nik Faisal as a director and CEO of SRC International in 2011.

Clause 117 of 1MDB’s Memorandum and Articles of Association stipulates that the prime minister’s written approval is needed to hire or dismiss company directors or senior management approval.

However, during cross-examination by defence counsel Harvinderjit Singh, Ismee changed his testimony saying that Nik Faisal was appointed by the 1Malaysia Development Berhad (1MDB) board of directors in August 2, 2011.

At the time, Ismee was a director of 1MDB, the holding company of SRC International.

The decision by the 1MDB board to appoint Nik Faisal as a SRC director was reached after it received a resolution from 1MDB shareholders over the appointment.

Najib, also the former Finance Minister 1, currently faces 7 charges of abuse of power, criminal breach of trust and money-laundering pertaining to an alleged misappropriation of funds belonging to SRC International.

Ismee also admits that he did not personally witness Najib signing the minutes of an extraordinary general meeting (EGM) on April 23, 2012, which passed an amendment to SRC International’s memorandum of association.

The purported amendment was to Article 117 of SRC International’s memorandum of association, which led to Najib’s appointment as adviser emeritus of the company.

Ismee said that the board had only relied on Nik Faisal’s briefing during a meeting on June 8, 2012.

Hearing continues tomorrow before Judge Mohd Nazlan Mohd Ghazali.

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