KUALA LUMPUR - A former director of SRC International Sdn Bhd told the High Court here today that he had no knowledge of the transfer of RM42 million from the company to the personal bank account of Datuk Seri Najib Tun Razak.
The RM42 million was part of the RM123 million borrowed by SRC from the Retirement Fund (Incorporated) (KWAP), before being channeled to Najib's account through Ihsan Perdana Sdn Bhd, the company that manages the corporate social responsibility programme for SRC.
Tan Sri Ismee Ismail, 61, said he was not informed about the transaction at all and only learned about the matter after being called by the authorities to assist in investigations into the KWAP loan.
He said this in his witness statement at the trial of the RM42 million civil suit filed against Najib by SRC and its subsidiary, Gandingan Mentari Sdn Bhd.
Ismee explained that he resigned as a director of SRC on August 15, 2014, while the transfer in question allegedly took place between December 2014 and February 2015.
"I was not involved in any matter regarding the KWAP loan application. When I started as a director of SRC, the loan application was made in advance and approval had already been obtained.
"In my opinion, Datuk Seri Najib's involvement in this matter was regarding the government guarantee. The loan was a loan guaranteed by the government, where Datuk Seri Najib was the Prime Minister and also the Minister of Finance at the time," he said.
Meanwhile, Ismee said that according to his understanding and assumption, the SRC Board of Directors cannot make any decision that contradicts or rejects the shareholders' resolution that has been tabled.
"This is because any such decision and resolution is not only from Datuk Seri Najib, but also from the Minister of Finance which is directly a decision from the government, where Datuk Seri Najib was also the Prime Minister at the time.
"Any decision made or to be made by SRC is proposed and determined by its shareholders, namely the Minister of Finance Incorporated. I and other SRC directors will only be presented with the resolutions that have been set," said Ismee, who also informed that the SRC Board of Directors is only responsible for approving the resolutions.
Commenting on Najib's claim that the SRC Board of Directors should also be held liable for paying damages for breaching fiduciary duties, Ismee said the claim was completely baseless.
"I and other SRC board members carried out the instructions and decisions of the shareholders in good faith without suspecting any wrongdoing or crime, because in my understanding at the time, it was the government's intention to implement investments in the national interest through SRC as a "special purpose vehicle".
"Furthermore, after I resigned, I had no authority to supervise the administrative or business affairs of SRC and any subsequent transfers, including the RM42 million that allegedly occurred without my knowledge or involvement," he said.
SRC and Gandingan Mentari, which filed the suit in 2021, are seeking a declaration that Najib is responsible for the funds totalling RM42 million and are seeking damages for alleged knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.
The trial before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues tomorrow. - BERNAMA