SRC director may have worked with CEO to hoodwink BoD — Witness

(Bernama) – SRC International Sdn Bhd former director Datuk Suboh Md Yassin might have been in cahoots with the company’s then-chief executive officer Nik Faisal Ariff Kamil to hoodwink its board of directors (BoD), the High Court here heard yesterday.

SRC BoD former chairman Tan Sri Ismee Ismail and the prosecution’s 39th witness in Datuk Seri Najib Tun Razak’s trial agreed with counsel Harvinderjit Singh’s suggestion that the board was not informed about the deal between Gandingan Mentari Sdn Bhd and Putra Perdana Construction Sdn Bhd.

According to the deal, Gandingan Mentari would fork up RM140 million for Putra Perdana Construction to invest in South America.

The lawyer noted that the deal involved a 70/30 profit split between Gandingan Mentari and Putra Perdana Construction.

Gandingan Mentari is a subsidiary of SRC International, while Putra Perdana Construction is a subsidiary of Putrajaya Perdana Berhad.

Harvinderjit: Gandingan Mentari entered an agreement with Putra Perdana Construction as pseudo- investment manager in mining in South America, commit RM140 million to Putra Perdana Construction and split 70/30 with Gandingan. This was not told to the board?

Ismee: Yes.

Harvinderjit: It appears that Suboh was complicit with Nik Faisal?

Ismee: Yes.

Harvinderjit: RM2 billion loan from the Retirement Fund Incorporated (KWAP) was credited into the account on March 28, 2012 and debited out of the account on March itself. The board did not approve of this?

Ismee: Yes.

Harvinderjit: The fact that the money came in and out, there is no complying with the board’s mandate.

Ismee: Yes.

Harvinderjit: This is serious fraud?

Ismee: Yes.

Harvinderjit: After 2012, RM2 billion was in and out in SRC’s account in March … there is money (that) goes in and out … Did you ask them (Nik Faisal and Suboh) about it?

Ismee: I asked Suboh and he said that Nik Faisal said ‘everything is okay’.