The Malaysian Insight

FORMER prime minister Najib Razak, who is on trial for misappropriating RM42 million from SRC International, said he had never had a personal or financial interest in the government-linked entity.

“Once again, I stress that I do not have any personal or financial involvement in SRC International,” the 66-year-old accused testified in the Kuala Lumpur High Court today.

“My interest was only to ensure the success of SRC International in achieving its objectives for the nation’s benefit,” he said during examination-in-chief by Wan Aizuddin Wan Mohammed.

Najib said it was common for the government to stand guarantor for companies owned by MoF Inc to allow them to obtain funding quickly and on better terms.

Describing the cabinet as the backbone of the government, Najib said it approved both of the loans and it was also informed that ownership of SRC International would be transferred to MoF Inc.

Wan Aizuddin: As minister of finance, did Datuk Seri have any interest in the companies owned by the Minister of Finance Inc (MoF Inc)?

Najib: My priority was to ensure that any decision in relation to the MoF Inc is made in the best interest of the government. I also wish to add that the Finance Ministry has never withdrawn from any discussion involving a MoF Inc company because if it did so, no one will defend the proposal that is being tabled.

It doesn’t make sense to suggest that the minister of finance should withdraw himself on the basis of professional interest, he added.

Najib was next asked whether the cabinet had on August 17, 2011 and February 8, 2012 approved a total of RM4 billion in loans.

Wan Aizuddin: Relating to the cabinet meetings on August 17, 2011 and February 8, 2012, could it be said that the cabinet only approved them (RM4 billion in loans) because SRC International was an initiative that has received Datuk Seri’s special attention and everyone in the cabinet felt obligated to approve them.

Najib: That is not how the government operates. To suggest that the cabinet is a rubber-stamping body would be an insult to the administrative officers of the government. The cabinet meeting is classified to ensure that each cabinet member can speak freely for the sake of their ministry and the government in general.

I do not believe that any cabinet member would not abdicate the responsibility of his public office by not voicing an opposing opinion. It is common for cabinet minister to disagree with the proposals tabled by the prime minister or any ministry, seeing as that is the purpose of discussing them in the cabinet.

Najib denied that he had purview over the SRC International board’s every decision. He also disputed previous testimonies by former SRC International chairman Ismee Ismail and former director Suboh Md Yassin that former CEO Nik Faisal Ariff Kamil was the middleman between Najib and SRC International..

“Absolutely not. This is not how MoF Inc company is managed. SRC International was no exception. In the limited interactions I had with Nik Faisal, he informed me that the board of directors has decided investment matters after deep discussions and due diligence have been carried out with negotiators and third-party consultants.

“I was sure I never directed the board of directors in anyway on the same issue. I have never been in a position to micro-manage any MoF Inc company, including SRC International. Furthermore, SRC International was only one of many MoF Inc companies involved in projects of national importance. There was no reason for me to direct SRC International’s board of directors through Nik Faisal.”

Najib then criticised SRC International’s directors, including Ismee, for not verifying instructions that were allegedly relayed to them by Nik Faisal.

“It is becoming clear that Nik Faisal has played both sides,” he said.  
   
“Tan Sri Ismee, as I have previously mentioned, is a corporate figure with vast experience in managing government-linked companies. He has my personal number to call and we have personally met several times. But not once have I been questions on the matters he said Nik Faisal told the board.” – December 4, 2019.