Day 22: 'SRC board never sought to verify if Nik Faisal was link to Najib'
LIVE | The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 22nd day at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings...
LIVE | The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 22nd day at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings.
KEY HIGHLIGHTS
- 'SRC board never sought to verify if Nik Faisal was link to Najib'
- Witness blushes upon being 'praised' by defence team
- Debate ensues over Najib's role in SRC director's appointment
- Nik Faisal appointed as SRC director on Najib's orders
- I didn't see Najib sign minutes, says SRC ex-boss
- Ex-SRC chief can't confirm authenticity of minutes
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5.27pm - Thank you for following our live report today.
Reporting by Hariz Mohd and Hidir Reduan. Photographs by Azneal Ishak. Social media updates by Ewe Linq Yenn.
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5.25pm - Proceedings adjourn for the day and will resume at 9am tomorrow.
'SRC board never sought to verify if Nik Faisal was link to Najib'
4pm - Ismee Ismail admits that the SRC International board of directors never sought to verify whether its director Nik Faisal Ariff Kamil was indeed acting as a link with then-prime minister Najib Abdul Razak.
Ismee, the former chair of the SRC International board, says this during cross-examination by defence counsel Harvinderjit Singh.
Earlier, the court heard that Najib, the finance minister and the head of Minister of Finance Inc at the time, was appointed as SRC International's adviser emeritus.
Harvinderjit: Whether Nik Faisal had any discussion with Najib as adviser emeritus (of SRC International), the board never wrote at any one time for verification? You just accepted whatever Nik Faisal said? It did not sound like gibberish and it sounded right?
Ismee: Yes.
Witness blushes upon being 'praised' by defence team
3.35pm - Laughter interrupts the contentious cross-examination of witness Ismee Ismail by defence lawyer Harvinderjit Singh, after he is asked whether he was appointed to as SRC International chairperson due to his vast corporate experience.
Harvinderjit: Coming back to your personal belief as to why you were selected, it was due to experience at the GLC level and corporate world.
Ismee: It was the same for the other directors (of SRC International).
Harvinderjit: Yes, these directors had experience, there was no hurdle for anyone to be appointed by the prime minister (for positions in the company) per the articles (of association of SRC International).
Ismee: Yes.
Harvinderjit: The appointment means there was an amount of confidence that you could protect the company's interest.
Ismee: Yes. Sebenarnya, saya malu (Actually, I am embarrassed at being praised).
The last exchange elicits laughter from the public gallery.
2.40pm - Proceedings resume after the lunch break, with defence lawyer Harvinderjit Singh continuing his cross-examination of former SRC International chairperson Ismee Ismail.
Debate ensues over Najib's role in SRC director's appointment
1pm - Defence counsel Harvinderjit Singh argues with prosecution witness Ismee Ismail over the appointment of Nik Faisal Ariff Kamil as SRC International director in 2011.
This comes as Harvinderjit (photo) appears to be dissatisfied when Ismee links the accused Najib Abdul Razak to Nik Faisal's appointment.
Ismee formerly chaired the board of SRC International and sat on the board of 1MDB.
He earlier told the court that Nik Faisal was appointed as SRC International director by the 1MDB board after receiving a resolution from the latter's shareholder – Minister of Finance Inc, which was in turn under the direct control of Najib as the then-finance minister.
Harvinderjit then tells Ismee to point out which part of the law empowers the 1MDB board of directors to appoint directors for SRC International.
Ismee says that this was the reality at SRC International, which reported to the prime minister and had to secure his permission to appoint directors.
He later agrees that the company's merger and acquisition agreement states that only the SRC International board can decide who can be a director.
However, he insists that Najib had a say in Nik Faisal's appointment, as only Najib could formalise the appointment of an SRC International director at the time.
This prompts another fiery argument on the interpretation of Najib's role in formalising appointments, before Justice Mohd Nazlan Mohd Ghazali adjourns the hearing for lunch break.
Proceedings will resume at 2.30pm.
Nik Faisal appointed as SRC director on Najib's orders
12.45pm - Former chairperson of SRC International Ismee Ismail tells the High Court that Nik Faisal Ariff Kamil was appointed as a director of SRC International in 2011 on the order of former premier Najib Abdul Razak.
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.
Ismee testifies under cross-examination by defence counsel Harvinderjit Singh that the decision to appoint Nik Faisal was made by the 1MDB board of directors in Aug 2011.
At the time, 1MDB was the holding company of SRC International. Ismee was also a member of the 1MDB board at the time.
The decision by the 1MDB board to appoint Nik Faisal as an SRC director was reached after it received a resolution from 1MDB shareholders about Nik Faisal's appointment, says Ismee.
"It was a resolution by the board of 1MDB, upon receipt of a resolution from shareholders to appoint (Nik Faisal) as director of SRC," Ismee testifies.
SRC International was later placed directly under the Minister of Finance Inc on Feb 14, 2012. Najib was also finance minister, and as such had direct control over MOF Inc.
I didn't see Najib sign minutes, says SRC ex-boss
10.45am - Former SRC International chairperson Ismee Ismail admits he did not personally witness then-prime minister Najib Abdul Razak sign the minutes of an extraordinary general meeting on April 23, 2012, which passed an amendment to the company'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.
Previously, the court heard that the amendment resulted in the SRC International board being required to give due consideration and implement Najib’s advice.
Najib was also finance minister at the time, overseeing the Finance Ministry’s holding company Minister of Finance Inc, which directly owned SRC International.
During today's cross-examination by lawyer Harvinderjit Singh, Ismee admits he did not actually witness Najib signing the April 23, 2012 minutes.
The witness admits he was only relying on what SRC International director Nik Faisal Ariff Kamil had told the SRC International board in a meeting on June 8, 2012.
“You said on the face of it that it (the minutes) was signed by Najib. But you cannot tell as he (Najib) did not sign in front of you.
“It was only through Nik Faisal (that Ismee heard about Najib's purported signing). Nik Faisal represented that he acted for Minister of Finance Inc.
“How exactly the minutes came about, you were not personally aware?” asked Harvinderjit. Ismee answered in the negative.
Ex-SRC chief can't confirm authenticity of minutes
10.12am - Former SRC International chairperson Ismee Ismail admits he could not confirm the authenticity of the minutes he had of the alleged meeting between SRC International director Nik Faisal Ariff Kamil and then-prime minister Najib Abdul Razak.
He gives this admission after being cross-examined for nearly an hour by defence counsel Harvinderjit Singh.
Harvinderjit was questioning the 39th witness over the veracity of the Sept 7, 2011 minutes, which purportedly concerned the meeting between Nik Faisal and Najib, who was then the finance minister.
Earlier, Ismee testified that he received the Sept 7, 2011 minutes from Nik Faisal purportedly after the latter briefed the SRC International board over the meeting with the then premier.
The SRC International board was purportedly briefed during their Sept 13, 2011 meeting.
Harvinderjit: You cannot actually confirm if this is the actual document (alleged minutes of Sept 7, 2011 meeting between Nik Faisal and Najib) raised by Nik Faisal at the meeting (with SRC International's board of directors) as you never checked it after the meeting (between Nik Faisal and Najib)?
Ismee: Yes.
Yesterday, the defence had objected to the prosecution's bid to admit the Sept 7, 2011 minutes as evidence.
Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali then ruled that the item can only be marked as ID (identification) rather than as an exhibit.
Under the law, an ID item can only be referred to in passing during proceedings, and its actual contents cannot be raised during questioning.
9.05am - Najib Abdul Razak steps into the dock as Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali enters the court to begin proceedings.
Deputy public prosecutor Ishak Mohd Yusoff resumes examination-in-chief of former SRC International chairperson Ismee Ismail.
Najib's lead counsel Muhammad Shafee Abdullah is also present in court.
8.58am - The accused, Najib Abdul Razak, enters the courtroom and takes a seat at the front row of the public gallery.
Seen at the front are Attorney-General Tommy Thomas and other members of the prosecution.
Also in court are Najib's defence counsel Harvinderjit Singh and other members of the defence team.
All eyes will be on the testimony of former SRC International chairperson Ismee Ismail, as Najib Abdul Razak’s trial for alleged abuse of power, corruption and money laundering continues into its 22nd day.
The 39th witness said yesterday that the then-prime minister and finance minister had allegedly given a directive, through SRC International director Nik Faisal Ariff Kamil, for the company to transfer RM1.5 billion of the first tranche of its RM2 billion loan from Retirement Fund Inc (KWAP) for overseas investment.
SRC International, which in early 2012 became fully-owned by Minister of Finance Inc, received its first RM2 billion loan facility from KWAP in August 2011.
The second RM2 billion loan facility was obtained by the company from the fund in March 2012.
With the prosecution’s examination-in-chief set to resume before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali, Ismee may shed more light on Najib's alleged role in directing how the RM4 billion of loans from KWAP was managed and transferred locally and internationally.
Yesterday, Ismee (photo) testified that the directive was allegedly made during a Sept 7, 2011 meeting between Nik Faisal and Najib, and which was later conveyed by the former to the SRC International board at a Sept 13 meeting.
The witness claimed that following concerns by SRC International over how the funds were managed, its whole board of directors went to BSI Switzerland in September 2013 to check whether the money was still there.
The poser over what really transpired at the Sept 7, 2011 meeting arose when the defence yesterday objected to the prosecution’s bid to tender as evidence the minutes of the said meeting.
Nazlan concurred with the defence and ruled for the minutes to be marked as ‘ID’ (identification) rather than an exhibit.
The judge added, however, that the issue of whether to properly tender the document could be revisited when a MACC investigating officer is called to testify in court.
Najib’s defence team had questioned the authenticity of the minutes by labelling it as fake, due to purported uncertainty of how the item was obtained by the prosecution.
The minutes were allegedly seized by the MACC in the course of its investigation into 1MDB.
