KUALA LUMPUR (Jan 22): SRC International Sdn Bhd’s former director Datuk Suboh Md Yasin told the High Court on Wednesday that he signed four blank cheques that led to RM19.5 million going to Umno and Umno Selangor.
However, he said he did not know how the cheques or the money ended up in the political party’s accounts. Suboh is testifying as the second witness in a lawsuit by SRC and its subsidiaries against Umno and Umno Selangor.
Three cheques dated April 8, 2015 for a sum of RM16 million made their way to Umno, while another cheque dated June 8, 2015 for RM3.5 million was cashed into Umno Selangor’s coffers.
In the opening statement for the trial, lawyer Razlan Hadri Zulkifli said RM43.96 million in SRC and its subsidiary Jendela Pinggiran Sdn Bhd were used by Najib as his slush fund.
Replying to questions from Razlan, who appeared for SRC, Suboh said it was former prime minister Datuk Seri Najib Razak who appointed him as a director of SRC in 2011. Najib was the advisor emeritus of SRC.
Suboh was then appointed as directors of SRC's subsidiaries Gandingan Mentari Sdn Bhd in 2013 and Jendela Pinggiran in 2014. He retired as the secretary general of the Ministry of Natural Resources and Environment in 2009.
Suboh, who just turned 74, said a sum of RM43.96 million was transferred from SRC to Gandingan Mentari, and then to Jendela Pinggiran between April to July in 2015.
He believed it to be part of the RM4 billion loan from Retirement Fund Inc (KWAP), where RM3.6 billion was transferred overseas, while the remaining RM400 million remained with SRC.
The witness said he did not know why a huge sum of RM43.96 million was transferred into Jendela Pinggiran, as he was not familiar with its business activities or the purpose of its incorporation.
It has been established in Najib’s other criminal trial that the KWAP loan was disbursed to SRC in two tranches of RM2 billion each in 2011 and 2012.
'Companies run under Najib’s direction'
Suboh — who was a director of Jendela Pinggiran from Oct 14, 2014 to July 18, 2019 — said that SRC, Gandingan Mentari, and Jendela Pinggiran were run under Najib’s direction.
“He had absolute control and influence over the direction of SRC, and how SRC is to be run,” Suboh said.
All decisions on important matters regarding SRC and the two subsidiaries, including “financing, opening bank accounts, appointments of CEOs, legal counsels, company secretaries, establishment of subsidiaries and formation of joint venture companies, were conveyed via shareholder minutes issued by Najib”, the witness said.
Directors were expected to “ultimately implement any decisions made by Najib as communicated by” Nik Faisal Ariff Kamil, who was the CEO of SRC, Suboh noted. “The other directors and I were in no position to object to or override any decisions that we were instructed to implement and to take all necessary effect to these instructions.”
The witness further described Nik Faisal as Najib’s proxy, as any communication and instructions by Najib to the board were conveyed through him.
Suboh said that Nik Faisal had only approached him to sign documents.
"Initially, I would query the purpose of the documents that he required me to sign," Suboh said. "My queries would regularly be brushed aside, with a statement suggesting that the underlying transaction must be done at Najib’s behest."
'No board meetings, but cheques were signed'
The witness said there were no board meetings, resolutions, approvals, or discussions for SRC and Gandingan Mentari to transfer the money to Jendela Pinggiran.
Further, he said he did not know the outcome of the sum of RM43.96 million transferred to Jendela Pinggiran.
When shown the four cheques issued by Jendela Pinggiran paid to Umno and Umno Selangor, Suboh agreed that he signed the cheques along with Nik Faisal as directors.
Suboh said he did not know that the receipients were supposed to be Umno and Umno Selangor, and pointed out that the cheques presented to him to sign were without the name of the recipient, and without the amount. However, the cheques were “pre-signed” by Nik Faisal, he noted.
“I was told by Nik Faisal that the signing of the cheques was instructions from the top”, and that it was how cheques for Jendela Pinggiran were usually signed, he said.
Nik Faisal then took back the blank cheques, and “after that, I never saw them again”, Suboh testified, stressing that he trusted Nik Faisal and had no reason to doubt him, as Nik Faisal was the CEO and represented himself to be close to Najib.
“In fact, the entire board of directors accepted whatever and whenever Nik Faisal informed us — that those certain instructions came” from Najib, Suboh said. “In those situations, we acted on what was directed, [and] this happened throughout my tenure” in SRC, Gandingan Mentari and Jendela Pinggiran, Suboh added.
Umno was represented by counsel Shahrul Fazli Kamarulzaman, while Datuk Hasnal Rezua Merican appeared for Umno Selangor.
The trial before High Court judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues.