PUTRAJAYA, April 14 — The Court of Appeal was told today that Datuk Seri Najib Tun Razak had absolute power over SRC International Sdn Bhd, including over hiring and firing its directors, as the company’s constitution itself allows it.
Ad-hoc prosecutor Datuk V Sithambaram submitted that a provision in SRC’s Memorandum and Articles of Association stated that nobody could be appointed director without the blessings of the then prime minister.
Sithambaram submitted this before a three-member bench led by Judge Datuk Abdul Karim Abdul Jalil in the hearing of Najib’s appeal against his conviction and jail sentence for the misappropriation of RM42 million in SRC International funds.
The other two judges on the bench were Datuk Has Zanah Mehat and Datuk Vazeer Alam Mydin Meera.
Sithambaram: We are saying that Najib had the power in hiring and firing the SRC (directors).
Abdul Karim: Not the board of directors?
The prosecutor also said Najib was the “controlling mind” of the company in his capacity as the prime minister, finance minister and adviser emeritus of the SRC at the material time.
“The board acted on the instruction of Najib through SRC chief executive officer, Nik Faisal Ariff Kamil who was the ‘mountain’ behind the appellant (Najib),” he added.
Sithambaram explained that the former SRC chairman Tan Sri Ismee Ismail and its director Datuk Suboh Md Yassin had testified during the Kuala Lumpur High Court trial on the power wielded by Najib.
He said Najib was already involved in SRC as early as 2011 when the company was incorporated as a private limited company.
Sithambaram said the company constitution stated that Najib must be referred to if certain key decisions were made.
The prosecutor added that the company first became a subsidiary of 1MDB and was later placed under the Ministry of Finance Incorporated.
The Kuala Lumpur High Court had on July 28 last year sentenced Najib to 12 years’ jail and a RM210 million fine after finding him guilty on seven charges of criminal breach of trust, money laundering and abuse of position, involving RM42 million in SRC International funds.
The hearing of the appeal continues.