Ex-SRC director Ismee denies knowledge of RM42mil transfer to Najib

2026-03-05 - 09:04

SRC International and its subsidiary are suing former prime minister Najib Razak to recover RM42 million allegedly misappropriated from the company. KUALA LUMPUR: Former SRC International director Ismee Ismail told the High Court he had no knowledge of the transfer of RM123 million from the company and its subsidiary, Gandingan Mentari Sdn Bhd, to Ihsan Perdana Sdn Bhd 11 years ago. He further testified that he was unaware of the subsequent transfer of RM42 million into former prime minister Najib Razak’s personal account. During examination-in-chief, Ismee, 61, claimed he only became aware of the transactions after being summoned by authorities to assist in investigations involving loans from Retirement Fund Incorporated (KWAP), as well as through Najib’s court proceedings. “The said transfers took place in December 2014 and February 2015. However, I resigned from the company on Aug 15, 2014,” he said when questioned by his counsel, How Li Nee. Ismee also rejected Najib’s allegation that SRC International’s board of directors had breached their fiduciary duties, which allegedly caused the company’s losses. “The board of directors had carried out the shareholder’s instructions and decisions in good faith without suspecting any criminal activity. “To my understanding, it was the government’s wish to implement investment activities that were good for the country that would be realised through the company as a special purpose vehicle,” he said. Najib, in his capacity as finance minister at the time, was the sole shareholder of SRC International through the Ministry of Finance Incorporated. SRC International and Gandingan Mentari are suing Najib to recover RM42 million allegedly misappropriated from the company’s accounts. Najib subsequently named six former directors, including Ismee, as third-party witnesses, alleging they bear full or partial responsibility if the court finds him liable to the two companies for their losses. The other directors named are Suboh Yassin, Azhar Osman Khairuddin, Che Abdullah @ Rashidi Che Omar, Nik Faisal Ariff Kamil, and Shahrol Azral Ibrahim Halmi. Najib, 72, has been jailed since Aug 23, 2022, following his conviction for misappropriating RM42 million in SRC funds. He was sentenced to 12 years’ jail and fined RM210 million. On Jan 29, 2024, the Federal Territories Pardons Board halved his jail term to six years, and reduced his fine to RM50 million. On Dec 26 last year, the High Court sentenced Najib to 15 years in prison and fined him RM11.387 billion following his conviction in his 1MDB case, with the prison term to follow immediately after he completes his current jail term. Senior counsel Shafee Abdullah represented Najib while Kwan Will Sen appeared for SRC International. The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan continues tomorrow.