SRC International is a sham with RM4 billion loans that went nowhere
Prosecutor said Najib played a role in Cabinet meetings that resulted in the approval of government guarantees for RM4 billion loans.
by RAHIMI YUNUS / photo by TMR FILE
SRC International Sdn Bhd was supposed to use the RM 4 billion loans from Retirement Fund Inc (KWAP) to invest in strategic energy resources, but nothing was achieved and instead RM 42 million was deposited into Datuk Seri Mohd Najib Razak. (Photo) accounts, the Court of Appeal heard.
In Najib’s appeal to SRC International last week, ad hoc prosecutor Datuk V Sithambaram said SRC International was a sham with business plans kept on paper.
He added that Najib played a role in Cabinet meetings in 2011 and 2012 which resulted in the approval of government guarantees for the RM 4 billion loans, otherwise KWAP would not have granted the funding to SRC International which only had two share units valued at RM 1. each.
Judge Datuk Abdul Karim Abdul Jalil raised questions about the intention to create SRC International.
Abdul Karim: You say that this is all a sham, that the creation of SRC International is a sham?
Sithambaram: No, the creation of the company is not a sham, but the investments are.
Abdul Karim: So, is it a sham to cover up the real intention?
Sithambaram: Yes. If the company really made the investments and made millions in profit or 100% profit, you still can’t take RM42 million for your own use.
The prosecution also told the appeals court last week that Najib was the “controlling spirit” of SRC International in his capacity as then prime minister (PM), finance minister and emeritus advisor to. the society.
Sithambaram said that Najib had absolute power over SRC International, including the hiring and firing of its directors, given the memorandum and articles of association of the company which stated that no one could be appointed a director without the blessing of the prime minister. .
He also said the board acted on Najib’s instructions through SRC CEO Nik Faisal Ariff Kamil, who was the âmountainâ behind the appellant.
This was a rebuttal of the defense arguments that Najib had no knowledge of transactions in SRC International, but it was the runaway businessman Low Taek Jho, also known as Jho Low, and several other key people who orchestrated the “theft” at SRC International.
In addition, the Court of Appeal was also informed that the organizational charts kept by the former Attorney General Tan Sri Mohamed Apandi Ali during a press conference (PC) in 2016 showed that the funds entered into Najib’s accounts came from from SRC International, not from Arab donations.
Sithambaram said the charts clearly show the flow of money through a process of overlaying SRC International on Najib’s bank accounts.
Ironically, he said the same flowcharts used by Mohamed Apandi to exonerate Najib in the CP were later used by the prosecution in the SRC International trial.
Najib was found guilty of all seven counts – one count of abuse of position, three counts of criminal breach of trust (CBT) and three counts of money laundering – relating to the embezzlement of $ 42 million. RM owned by SRC International.
The High Court sentenced Najib to 12 years in prison and fined RM 210 million for abuse of power linked to the embezzlement of RM 42 million. He was also sentenced to 10 years in prison each for three CBT offenses and 10 years in prison each for three money laundering offenses committed in connection with the embezzlement of funds from the fund.