SRC board believed Najib’s directives in national interest, court told

2026-03-06 - 06:53

SRC International and its subsidiary are suing former prime minister Najib Razak to recover RM42 million allegedly misappropriated from the company. (Bernama pic) KUALA LUMPUR: Former SRC International Sdn Bhd director Ismee Ismail told the High Court today that the company’s board of directors followed Najib Razak’s directives because of the former prime minister’s dominant authority over SRC International and their belief that his instructions were in the country’s interests. Testifying as a third-party witness in a civil suit filed by SRC International and its subsidiary Gandingan Mentari Sdn Bhd against the former prime minister, Ismee said the board acted strictly in accordance with shareholder resolutions and lacked the authority to decide otherwise. Najib, in his capacity as finance minister at the time, was the sole shareholder of SRC International. During cross-examination by SRC International’s counsel Lee Suan Cui, Ismee agreed that the board could not take decisions that went against shareholder’s resolutions. Lee referred Ismee to his witness statement, which stated that the situation arose because Najib wore “three different hats” at the time. Lee: In your witness statement, you specified that the SRC board could not make any decision against the shareholder resolution because of the three different hats worn by the defendant (Najib), namely adviser emeritus of SRC, prime minister and finance minister, correct? Ismee: Yes, and the board also believed that his directives or advice were for the good of the country and in the best interests of the company. Ismee also agreed that the board’s actions at the time were in line with SRC International’s memorandum and articles of association (M&A), which provide the highest authority to the role of adviser emeritus. Referring to Article 117 of the M&A, Lee said the adviser emeritus would advise the board on material matters and matters of strategic interest to Malaysia, and that the board “shall give due consideration to and implement” any advice given. Lee: Would you agree that the phrase “shall give due consideration to and implement” leaves no room for the SRC board to not implement the shareholder’s advice? Ismee: Yes. Ismee, 61, is one of six former SRC International directors whom Najib added as third parties to the suit brought to recover RM42 million allegedly misappropriated from the company’s accounts. Najib contends that Ismee and the others – Shahrol Azral Ibrahim Halmi, Suboh Yassin, Azhar Osman Khairuddin, Che Abdullah @ Rashidi Che Omar and Nik Faisal Ariff Kamil – should share responsibility for any damages payable to the plaintiffs. Najib, 72, has been jailed since Aug 23, 2022, following his conviction for misappropriating RM42 million in SRC International 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’ jail and fined him RM11.387 billion after convicting him in his 1MDB case, with the prison term to begin after he completes his current sentence. Senior counsel Shafee Abdullah appeared for Najib while counsel How Li Nee represented Ismee. The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on March 16.