Day 24: Shareholder or advisor emeritus? Najib's trial comes to a halt
LIVE | What are the roles then SRC International chief executive officer (CEO) Nik Faisal Ariff Kamil played in the movement of the RM2 billion loan from Retirement Fund Incorporated (KWAP) to the then subsidiary of 1MDB?
This is the issue that may be further explored by Najib Abdul Razak's defence team when they resume their cross-examination of SRC International's former chairperson Ismee Ismail on the 24th day of the former prime minister's trial for abuse of power, corruption and money laundering of RM42 million from KWAP.
When proceedings resume before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali at 9am today, the defence team may grill the 39th witness for more oral evidence over Nik Faisal's dealings with the board of directors (BOD) of SRC International, which became fully owned by the Minister of Finance Incorporated in early 2012.
Yesterday while under heavy questioning by defence lawyer Harvinderjit Singh, Ismee told the court that Nik Faisal, who is currently missing and actively sought by the authorities, misled and kept the company's BOD in the dark over key matters in relation to its financial management...
LIVE | The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 24th day today at the High Court in Kuala Lumpur.
Malaysiakini brings you live reports of the proceedings.
KEY HIGHLIGHTS
- Shareholder or advisor emeritus? Najib's trial comes to a halt
- Prosecution and defence teams enter judge's chambers
- Witness: SRC board acted on Najib's advice as shareholder
- Sometimes I don't understand what you're saying - witness to lawyer
- I didn't meet Najib on suspicion over SRC accounts - witness
- Ultimately, Najib is my boss, says ex-SRC chairperson
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12.50pm - Thank you for following our live report today.
Reporting by Hidir Reduan. Photographs by Azneal Ishak. Social media updates by Ewe Linq Yenn.
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12.45pm - Proceedings adjourn for the day and will resume at 9am tomorrow.
Shareholder or advisor emeritus? Najib's trial comes to a halt
12.38pm - Najib Abdul Razak's trial came to a halt today when the Kuala Lumpur High Court allowed the defence's application to adjourn as they need to check for alleged contradictions in the accumulated oral evidence of former SRC International Ismee Ismail.
This follows the 39th witness' testimony in court today that the SRC International's board of directors (BOD) following the advice of the shareholder's resolution rather than that of Najib as advisor emeritus of SRC International.
Prosecution and defence teams enter judge's chambers
12.25pm - Members of the prosecution and defence are seen entering the chambers of Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali.
This is believed to be over the alleged contradiction of former SRC International chairperson Ismee Ismail's testimony on whether the company's board of directors followed Najib Abdul Razak's advice in his capacity as advisor emeritus to SRC International or as a shareholder.
Najib, back in 2011 and 2012, was the prime minister and finance minister.
The issue arose when Ismee gave a statement in court which contradicted his witness statement, which was recorded by the MACC.
Witness: SRC board acted on Najib's advice as shareholder
12.07pm - Former SRC International chairperson Ismee Ismail says that in his statement to the MACC, the company's board of directors (BOD) acted on the advice of Najib Abdul Razak in his capacity as a shareholder.
This is despite the 39th witness' written statement tendered in court stating that the BOD acted on the advice of Najib in his capacity as advisor emeritus of SRC International.
Harvinderjit: I put it to you that your statement to the MACC does not carry the statement that the board acted on the advice of prime minister as advisor emeritus (of SRC International)?
Ismee: I disagree. I said that we acted on shareholder (which is Najib, who was then also finance minister).
Harvinderjit then seeks a short break for the defence to decide on the next course of action.
Judge Mohd Nazlan Mohd Ghazali allows a short break.
Sometimes I don't understand what you're saying - witness to lawyer
10.35am - Former SRC International chairperson Ismee Ismail insists that the company's board of directors (BOD) still has the discretion to not follow a purported instruction from its main shareholder if there is a doubt on its veracity.
The 39th witness says this during cross-examination by lawyer Harvinderjit Singh.
"Even though we need to follow (shareholder's instruction), we have a choice if there is something wrong. Board will decide (on matters with the purported instruction)," Ismee says.
When Harvinderjit asks what is the standard for determining this, Ismee says it is not something that can be penned down on paper.
The witness adds that the SRC International board will deliberate on it, including how to carry out instruction properly.
Harvinderjit: I do not understand what you are saying.
Ismee: Sometimes I do not understand what you are saying.
The last answer elicits laughter from those present in court.
I didn't meet Najib on suspicion over SRC accounts - witness
10.15am - Former SRC International chairperson Ismee Ismail says that he did not meet then premier Najib regarding the suspicion on the audit status of the company's accounts as he needed to investigate the matter first.
During cross-examination by lawyer Harvinderjit Singh (above), the 39th witness disagrees with the lawyer's contention that he needed to report the matter with Najib.
"I disagree. I needed to investigate the non-filing, I called the auditor Deloitte on why the delay, they said several audit confirmations have not been received from the (SRC) management.
"I took responsibility and asked what the audit confirmation outstanding, they (Deloitte) gave me (info) which deals with local banks, among others.
"It was on my table for two weeks, I dealt with it one by one, I took responsibility to close the accounts.
"The reason Nik Faisal did not disclose, they said, was because busy with other matters," Ismee said, adding that he wanted to ensure the accounts were closed as he felt responsible.
He also said he did not escalate the matter to Najib as the problem has been resolved.
Ultimately, Najib is my boss, says ex-SRC chairperson
10am - "Ultimately, he (Najib Abdul Razak) is my boss, that is implied."
These are the words of former SRC International chairperson Ismee Ismail of then prime minister Najib's influence over the then 1MDB subsidiary in 2011.
The 39th witness made the admission when defence counsel Harvinderjit Singh grills him over the need for SRC International to observe corporate compliance by only taking into account instructions from its listed shareholder, 1MDB.
"You have to regard how 1MDB was birthed (came into being).
"In our state of mind at the time, we have advisor emeritus who is also prime minister, and (in) 1MDB, (thus) technically he was my boss.
"Even though I was CEO of Tabung Haji, ultimately he (Najib) was my boss, that is implied," Ismee tells Harvinderjit.
9.45am - Proceedings resume with former SRC International chairperson Ismee Ismail taking the stand for further cross-examination by Najib Abdul Razak's defence team.
9.38am - Najib Abdul Razak's lead counsel Muhammad Shafee Abdullah enters the courtroom after attending the mention of his RM9.5 million money laundering case in another court.
Also seen in court is attorney-general Tommy Thomas and other members of the prosecution as well as defence as they await the RM42 million SRC trial to resume.
9.11am - Najib Abdul Razak enters the dock as proceedings begin.
However, his defence counsel Wan Aizuddin Wan Mohammed informs Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali that the accused lead defence lawyer, Muhammad Shafee Abdullah, is attending another case mention before another High Court judge, Collin Lawrence Sequerah.
Aizuddin then seeks a short stand-down until 9.45am until Shafee can come to the SRC proceedings.
Nazlan: The court was not told of this yesterday.
Aizuddin: We apologise as we missed the (mention before judge Collin today) in the diary.
Nazlan then allows temporary adjournment of the trial until 9.45am.
The case before judge Collin this morning is the mention of Shafee's money laundering involving RM9.5 million allegedly received from former prime minister Najib Abdul Razak (photo).
Harvinderjit Singh is Shafee's counsel for the money laundering case.
8.57am - Clad in a blue suit and clutching a copy of the book 'The Laws of Human Nature' by Robert Greene, accused Najib Abdul Razak enters the courtroom.
He is seen conferring with his defence counsel Yusof Zainal Abiden while waiting for proceedings to begin.
8.40am - What are the roles then SRC International chief executive officer (CEO) Nik Faisal Ariff Kamil played in the movement of the RM2 billion loan from Retirement Fund Incorporated (KWAP) to the then subsidiary of 1MDB?
This is the issue that may be further explored by Najib Abdul Razak's defence team when they resume their cross-examination of SRC International's former chairperson Ismee Ismail on the 24th day of the former prime minister's trial for abuse of power, corruption and money laundering of RM42 million from KWAP.
When proceedings resume before Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali at 9am today, the defence team may grill the 39th witness for more oral evidence over Nik Faisal's dealings with the board of directors (BOD) of SRC International, which became fully owned by the Minister of Finance Incorporated in early 2012.
Yesterday while under heavy questioning by defence lawyer Harvinderjit Singh, Ismee told the court that Nik Faisal, who is currently missing and actively sought by the authorities, misled and kept the company's BOD in the dark over key matters in relation to its financial management.
Among them was the existence of an AmIslamic Bank account with an account number ending with 736 which was registered under SRC International's name, into which the first KWAP loan tranche of RM2 billion was transferred on Aug 29, 2011, without the BOD's knowledge.
SRC International later received a second tranche loan of RM2 billion from KWAP in early 2012.
Among other matters that Ismee revealed that was kept from the knowledge of the company's board members was that Nik Faisal did not inform them about him having early on sought an RM3.95 billion loan for SRC International in a letter to Najib dated June 3, 2011.
Prior to the first tranche of RM2 billion loan granted by KWAP to SRC International in August 2011, the company had made an official application for an RM3.95 billion loan from the fund.
The company's BOD only came into existence in August 2011, with Ismee being officially made its chairperson that same month. Prior to that as early as January 2011, SRC International only had Nik Faisal and Vincent Beng Huat Koh as the sole directors.
Najib's defence team may further question Ismee over the roles played by not only Beng but also that of the four authorised signatories of the 736 account, namely Nik Faisal, as well as Shahrol Azral Ibrahim Halmi, Terence Geh Choh Heng and Radhi Mohamed, who were 1MDB's CEO, executive director of finance, and chief financial officer respectively.
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