KUALA LUMPUR (March 5): Former SRC International Sdn Bhd director Tan Sri Ismee Ismail told the High Court on Thursday that he had no knowledge of the RM42 million transfer from company-linked funds that allegedly flowed into the accounts of former prime minister Datuk Seri Najib Razak.

Testifying in the civil suit brought by SRC and its subsidiary, Gandingan Mentari Sdn Bhd, Ismee said he was unaware of a RM123 million transfer to Ihsan Perdana Sdn Bhd — the corporate social responsibility arm of SRC — from which RM42 million was subsequently moved to Najib.

Ismee emphasised his lack of involvement by highlighting the timeline of his departure from the company.

"I had absolutely no knowledge of the transfer," he testified, noting that the transactions occurred months after he had stepped down from the board. Ismee resigned as a director on Aug 15, 2014, while the disputed transfers took place in December 2014 and February 2015. He said he only became aware of the transactions later during official investigations and court proceedings.

In his witness statement read out before High Court judge Raja Ahmad Mohzanuddin Shah Raja Mohzan, Ismee also distanced himself from the RM4 billion loan SRC obtained from the Retirement Fund (Incorporated) or KWAP.

The loan, disbursed in two tranches, was backed by a government guarantee signed by Najib, who was then serving as both prime minister and finance minister.

“I was not involved in any matter relating to the application for the KWAP loan,” Ismee said, adding the loan application and approval processes had already taken place before he joined SRC's board.

He testified that his knowledge of the loan only began once the matter was presented during board meetings. Management had informed the board that the funds were meant for strategic investments planned by the shareholder, including potential government-to-government ventures with companies linked to Abu Dhabi, he said.

“In my view, the defendant’s involvement was in providing the government guarantee required to obtain the KWAP loan,” he said.

In the suit filed in 2021, SRC and Gandingan Mentari are seeking a declaration that Najib is liable for the RM42 million.

The former prime minister is also being sued for breach of fiduciary duties, knowing receipt of the funds, dishonest assistance, tort of misfeasance and abuse of power.

While Najib is the primary defendant, the court permitted him to bring in six former directors as third-party defendants, alleging they share responsibility for SRC's losses. They include Ismee, Datuk Suboh Md Yassin, Datuk Shahrol Azral Ibrahim Halmi, Datuk Mohammed Azhar Osman Khairuddin, Datuk Che Abdullah @ Rashidi Che Omar and Nik Faisal Ariff Kamil.

The trial continues on Friday, with Ismee set to be cross-examined by Najib's counsel Muhammad Farhan Shafee.