[UPDATED] Najib had absolute power over SRC by design: prosecution

PUTRAJAYA – Datuk Seri Najib Razak had ultimate power over SRC International Sdn Bhd, including approving any investments and appointment of its directors, the Federal Court heard today.

In the opening salvo of Najib’s final appeal hearing in the RM42 million SRC corruption case, ad hoc prosecutor Datuk V. Sithambaram argued that Najib had structured the company so that he would be the ultimate decision maker.

“As the (then) prime minister, the appellant (Najib) is vested with authority to appoint and dismiss directors of SRC, and to approve any amendment to the company’s memorandum and articles of association (M&A).

“He was an adviser emeritus (of SRC) under the M&A; and as the finance minister, under MoF Inc (he) was the sole shareholder of SRC,” Sithambaram said.

“The appellant was literally running SRC by issuing shareholder minutes, even on which lawyer you (SRC) should hire, even which bank you should open an account.”

Speaking in his submission to the court, he added that the board had to listen to Najib because he had the appointing authority pursuant to Article 67 of the M&A of SRC.

Sithambaram further argued that Najib had overall control of the firm in his capacity as prime minister, finance minister, and adviser emeritus of SRC at that time.

As argued by the prosecution, this was evident in SRC’s first loan application to the Retirement Fund Incorporated (KWAP) in 2011, even before any due diligence was done.

In 2010, the Economic Planning Unit (EPU) under the Prime Minister’s Department issued a grant of RM20 million to 1Malaysia Development Berhad to set up SRC.

After receiving the grant, SRC then through its director Nik Faisal Nik Ariff Kamil applied for a RM3.95 billion loan from KWAP in June 2011.

Najib, in his capacity, had agreed to Nik Faisal’s loan proposal.

“It is the prosecution’s case that the political reality is that when the prime minister and/or finance minister stated that he agreed with the proposal, no other officer of the government or SRC would question him,” he said.

Sithambaram gave the prosecution’s oral submission today after the court ordered him to do so, following the defence’s refusal to submit.

Najib’s new lawyer, Datuk Hisyam Teh Poh Teik, had refused to submit and rely on the previous defence team’s written submission.

The court later took a break and will resume in the afternoon.

Today’s five-member panel are led by Chief Justice Tun Tengku Maimun Tuan Mat, and comprises Chief Judge of Sabah and Sarawak Tan Sri Abang Iskandar Abang Hashim as well as the Federal Court’s Datuk Nallini Pathmanathan, Datuk Mary Lim Thiam Suan, and Datuk Mohamad Zabidin Mohd Diah.

On July 28, 2020, high court judge Datuk Mohd Nazlan Mohd Ghazali sentenced Najib to 12 years in jail and fined him RM210 million after he was found guilty of misappropriating RM42 million belonging to SRC.

The Court of Appeal upheld Najib’s conviction on December 8 last year.

Once the hearing for his final appeal has concluded on August 26, the apex court is expected to make a decision a few months later.

If Najib’s conviction is upheld by the Federal Court, he will immediately have to serve his sentence. He would also have exhausted all legal means to appeal in this case.

The only recourse open to the former prime minister would then be to apply for a royal pardon after he has begun serving his sentence. – The Vibes, August 18, 2022