Najib was the “shadow director” and “controlling mind” of SRC in his capacity as the then prime minister, finance minister and adviser emeritus.
Datuk Seri Najib Razak had absolute power over SRC International Sdn Bhd, including over hiring and firing directors, as the company’s constitution allowed for that, the Court of Appeal heard today.
Ad hoc prosecutor V Sithambaram said a provision in SRC’s memorandum and articles of association said nobody could be appointed director without the blessings of the then prime minister.
“The hiring and firing is with the prime minister and not the board,” Sithambaram said in his submission to detail the prosecution’s case in Najib’s appeal against his conviction and sentence on corruption charges involving SRC International funds.
The appeal is being heard by a three-member bench chaired by Abdul Karim Abdul Jalil.
Sithambaram said former SRC chairman Ismee Ismail and director Suboh Md Yassin had testified during the High Court trial on the power wielded by Najib.
“Our case of his (Najib’s) power is found in the SRC constitution although Najib’s legal team has taken the position that their client had no control of the company,” he said.
He said Najib was the “controlling mind” of the company in his capacity as the then prime minister, finance minister and adviser emeritus.
The Deputy Public Prosecutor (DPP) said it was Najib who ensured SRC was given a RM4 billion loan which was guaranteed by the government to be used as an investment.
Sithambaram also explained to the judges how Kuala Lumpur High Court Judge Mohd Nazlan Mohd Ghazali had weighed all the evidence and wrote a phenomenal judgement on Najib’s guilt.
He said the court should not interfere with the findings of fact made by Justice Nazlan, who convicted Najib of all seven counts of abuse of power, criminal breach of trust and money laundering involving RM42 million of SRC funds.
Starting with the first charge, the Penang-based veteran criminal lawyer said evidence showed used his numerous positions to exert authority over individuals and institutions connected to the RM4 billion loan which was given to SRC without going through the proper process.
Sithambaram said the prosecution had proven its case by showing how Najib used his office and position for gratification through clear evidence as required under Section 23 of the MACC Act.
He said Najib had failed to declare his personal interest in SRC when the matter was presented to Cabinet.
Sithambaram explained how SRC was established with Najib’s support and how the company had gone to him directly when it failed to secure a loan from the Economic Planning Unit (EPU).
The other two judges on the bench were Has Zanah Mehat and Vazeer Alam Mydin Meera.
He said Najib “rushed” everyone to obtain the RM4 billion loan from Retirement Fund Incorporated (KWAP) in 2011 and 2012.
The loan was to carry out and invest in projects associated with conventional and renewable energy resources, natural resources and minerals.
“However, for the next six or seven years, nothing happened. In fact, Najib never received or asked for any board minutes or annual general meeting reports,” he said.
He said the two government guarantees for the loans were also not tabled in Parliament.
“In fact, he was the ‘shadow director’ apart from other positions he held in relation to the company,” he said.
Najib, who is the Pekan MP, is accused of abusing his power as the prime minister by giving government guarantees on SRC International’s RM4 billion loan from KWAP.
He was also charged with three counts of criminal breach of trust and three money laundering charges in relation to RM42 million belonging to SRC International, a former unit of 1MDB.
In July last year, High Court judge Mohd Nazlan Mohd Ghazali sentenced him to 12 years’ jail and fined him RM210 million after finding him guilty of seven corruption charges in relation to the RM42 million belonging to SRC International.
The hearing continues.