KUALA LUMPUR, June 19 — A former director of SRC International Sdn Bhd told the High Court today that his role in the firm felt like that of any ordinary civil servant due to Datuk Seri Najib Razak’s absolute control.

Datuk Suboh Md Yassin was testifying as a third party in SRC International Sdn Bhd’s US$1.18 billion (RM5.58 billion) civil suit against Najib.

Describing SRC International’s setup as peculiar, Suboh said what he experienced as a director was wholly atypical of a corporate setting.

“The running of SRC felt just like another government department under the direction of DSN (Najib), the prime minister and finance minister at that material time.

“DSN had full and absolute control over all aspects of the running of SRC, to the exclusion of the board (of directors).

“I felt that my role in SRC was not any different from that of being a civil servant in a government department,” he said in his witness statement.

Suboh explained that as civil servants, if their superiors required something to be done, they were not in any position to object to or to override any decision that was instructed to be implemented and to take all necessary steps to give effect to said instructions.

As for the peculiarity mentioned earlier, Suboh said one striking feature concerns implementation of decisions where the practice of “shareholder instructions” is conveyed by way of shareholder minutes.

“Important matters concerning financing, opening of bank account, appointment of chief executive, legal counsel, company secretary, establishment of subsidiary and formation of joint venture companies were contained in shareholder minutes issued by DSN.

“In certain instances, the shareholder minutes would take place even before any director’s circular resolution was signed by the board.

“In other instances, the director’s circular resolution and the shareholder minutes are dated the same,” he said.

He conceded that his involvement in the company was in hindsight merely to serve as a rubber stamp to carry out the behest of Najib.

“Perhaps the existence of the board was just to fulfil some perceived corporate requirement, but we were never intended to be involved in the day-to-day running of SRC, any of its investment plans, nor in decision-making processes.

“The discretion and powers of the board appears at hindsight to have been divested and reduced to a process of minimal oversight and giving feedback and at times caution to the management,” he said.

As Suboh was one of the mandated signatories of SRC International, he was also responsible for signing off company documents brought to him by another colleague of his, former executive director Nik Faisal Ariff Kamil.

Past witnesses have testified to Nik Faisal’s role in the company as the exclusive link between the company’s board of directors and Najib who was its adviser emeritus.

“Initially I would query on the purpose of the document that he would require me to sign.

“My queries would regularly be brushed aside with a statement suggesting that the underlying transaction must be done at the behest of Najib — for example ‘boss nak lah’ (the boss wants this) or ‘diminta pihak atas’ (request from above),” he said.

The hearing before Commercial High Court judge Datuk Ahmad Fairuz Zainol Abidin resumes on June 20.

Imprisoned since August 23, 2022, Najib is serving his 12-year jail sentence and RM210 million fine for his conviction over the misappropriation of SRC International’s RM42 million funds, which has recently been reduced to six years of jail and RM50 million fine by the Pardons Board.

SRC, under its new management, had filed legal action against Najib and its former directors Suboh, Mohammed Azhar Osman Khairuddin, Nik Faisal Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail in May 2021.

However, later, it removed five names from the suit and retained Najib and Nik Faisal as the defendant.

Additionally, Najib has brought the former named SRC International directors as third-party respondents.

SRC as a plaintiff in the writ of summons had alleged that Najib had abused his power and obtained personal benefits from SRC International’s funds as well as misappropriated the funds. Najib was SRC’s Emeritus Advisor from May 1, 2012, until March 4, 2019.

SRC International, which is now wholly owned by the Ministry of Finance Incorporated (MoF Inc), is seeking general damages, exemplary, additional interest, costs and other appropriate relief provided by the court.

SRC International is currently seeking a declaration from the court that Najib is liable to account for the company’s losses due to his breach of duties and trust.

The company is also seeking an order that Najib pay the US$1.18 billion in losses it suffered, and damages for breach of duties and trust; including an order that Najib compensate the sum of US$120 million which entered his bank account as well.

https://www.malaymail.com/news/malaysia/2024/06/19/former-src-director-najibs-absolute-control-made-me-feel-like-just-another-civil-servant/140501