Najib Trial Day 22 Src Board Never Sought To Verify If Nik Faisal Was Link To Najib

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The criminal trial of former prime minister Najib Abdul Razak involving the alleged misappropriation of funds from SRC International Sdn Bhd enters its 21st today at the High Court in Kuala Lumpur
Malaysiakini brings you live reports of the proceedings
Summary of Najib’s SRC RM42 million caseNajib is facing 7 charges relating to RM42m involving SRC International, a former 1MDB subsidiary
1 abuse of power charge3 criminal breach of trust (CBT) charges3 money laundering chargesClick to view infomation on judge, prosecution and defence teamKEY HIGHLIGHTS'SRC board never sought to verify if Nik Faisal was link to Najib'Witness blushes upon being 'praised' by defence teamDebate ensues over Najib's role in SRC director's appointmentNik Faisal appointed as SRC director on Najib's ordersI didn't see Najib sign minutes, says SRC ex-bossEx-SRC chief can't confirm authenticity of minutes'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, who chaired the SRC International board, says this during cross-examination by defence counsel Harvinderjit Singh
Harvinderjit was referring to Ismee's written statement which said that Nik Faisal was the link between the board and Najib. Earlier, the court heard that Najib, the finance minister at the time and the head of Minister of Finance Inc, 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 team3.35pm - Laughter breaks the normally serious proceedings today when lawyer Harvinderjit Singh tells former SRC International chairperson Ismee Ismail that the latter had been appointed to his position due to his vast corporate experience
The humorous moment arises following this morning's at times contentious cross-examination of the 39th witness by Harvinderjit
Harvinderjit: Coming back to your personal belief as to why you were selected, it was due to experience at the GLC (government-linked corporation) level and corporate world
Ismee: It was the same for 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 lunch break, with defence lawyer Harvinderjit Singh resuming his cross-examination of former SRC International chairperson Ismee Ismail
Debate ensues over Najib's role in SRC director's appointment1pm - The hearing continues with defence counsel Harvinderjit Singh arguing with prosecution witness Ismee Ismail over the appointment of Nik Faisal Ariff Kamil as SRC International's 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 is a former SRC International chairperson and former 1MDB board member
He had earlier told the court that Nik Faisal was appointed as SRC International director by 1MDB’s board after receiving a resolution from 1MDB shareholders
1MDB’s shareholder was the Minister of Finance Incorporated (MoF Inc), which was in turn under the direct control of Najib as the finance minister at the time
Harvinderjit then tells Ismee to point out which part of the law empowers 1MDB’s board of directors to appoint directors for SRC International
Ismee, in answering Harvinderjit, says that this was the reality at SRC International, which reported to the prime minister and had to secure his permission to appoint directors
The former SRC International chairperson later agrees that the company's merger and acquisition agreement states that only SRC International's board of directors 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 director then
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 orders12.45pm - 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 1MDB’s board of directors in Aug 2011
At the time, 1MDB was the holding company of SRC International. Ismee was also a member of 1MDB’s board of directors then
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 Ministry of Finance Incorporated (MoF Inc) on Feb 14, 2012
Then prime minister Najib was also finance minister, and as such had direct control over MoF Inc. I didn't see Najib sign minutes, says SRC ex-boss10.45am - 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 (EGM) 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 advisor emeritus of the company
Previously, the court heard that the amendment resulted in the SRC International board of directors 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 Incorporated, 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 39th witness admits he was only relying on what SRC International director Nik Faisal Ariff Kamil had told the SRC International board of directors 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 Incorporated
“How exactly the minutes came about, you were not personally aware?” asked Harvinderjit
Ismee confirmed he was not personally aware about how the minutes were created. Ex-SRC chief can't confirm authenticity of minutes10.12am - 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 Najib Abdul Razak's 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 also 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 of directors over the meeting with the then premier
The SRC International board of directors 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
DPP 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 to await for proceedings to begin
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 today will be on the further testimony of former SRC International chairperson Ismee Ismail during the 22nd day of Najib Abdul Razak’s trial for alleged abuse of power, corruption and money laundering involving RM42 million from the former 1MDB subsidiary
According to the 39th witness’s oral evidence yesterday, then prime minister and finance minister Najib had allegedly given a directive, through SRC International’s director Nik Faisal Ariff Kamil, for the company to transfer RM1.5 billion of its first tranche of RM2 billion loan from Retirement Fund Incorporated (KWAP) for overseas investment.SRC International, which in early 2012 became fully-owned by Minister of Finance Incorporated, 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 at 9am this morning, Ismee may shed more light of the alleged role by then premier Najib in issuing a directive for how the total RM4 billion loan from KWAP to SRC International 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 Nik Faisal to the company’s board of directors at its meeting on Sept 13, the same year
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 attended only by Najib and Nik Faisal 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 exhibit
Even though the minutes being marked as ID, which means the prosecution could only make passing reference to it rather than raise its actual contents during the trial, Nazlan had added that the issue of whether to properly tender it 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 the 1MDB matter
 -Mkini

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