In a striking testimony before the High Court, former SRC International Sdn Bhd director Datuk Suboh Md Yassin revealed that his role at the company felt indistinguishable from that of a typical civil servant, largely due to the overarching control wielded by Datuk Seri Najib Razak. Suboh's testimony is part of SRC International's US$1.18 billion (RM5.58 billion) civil suit against Najib.
Suboh described the structure and operations of SRC International as highly unusual for a corporate entity. He asserted that the firm operated more like a government department under Najib's directives, who at that time served as both prime minister and finance minister. According to Suboh, Najib had absolute control over SRC, effectively sidelining the board of directors.
"My role in SRC mirrored that of a civil servant in a government department," Suboh stated in his witness testimony. He explained that, like civil servants, the directors had no authority to challenge or override instructions from their superior, in this case, Najib. Suboh illustrated this peculiar setup, noting that significant decisions, such as financing, opening bank accounts, and appointing executives, were all dictated by "shareholder minutes" issued by Najib. Sometimes, these shareholder directives were issued even before the board's resolutions were signed, and on other occasions, they coincided with the board's resolutions.
Reflecting on his tenure, Suboh admitted that his role was essentially to rubber-stamp Najib's decisions. He suggested that the board's existence might have been mere to satisfy formal corporate requirements, without any real involvement in SRC's daily operations or investment strategies. The board's discretion, he added, was significantly curtailed, reducing their role to minimal oversight.
Suboh was also one of the mandated signatories for SRC International. He recounted how former executive director Nik Faisal Ariff Kamil often brought documents for him to sign. Initially, Suboh would question the purpose of these documents, but his queries were frequently dismissed with references to Najib's authority.
The court case, presided over by Commercial High Court judge Datuk Ahmad Fairuz Zainol Abidin, is set to continue on June 20. Najib, who has been imprisoned since August 23, 2022, is serving a 12-year jail sentence and an RM210 million fine for the misappropriation of RM42 million from SRC International. This sentence was recently reduced to six years and an RM50 million fine by the Pardons Board.
In May 2021, SRC International, now wholly owned by the Ministry of Finance Incorporated (MoF Inc), filed a lawsuit against Najib and several former directors, alleging abuse of power and misappropriation of funds. However, the suit was later narrowed down to Najib and Nik Faisal. Najib subsequently included the former directors as third-party respondents.
SRC International seeks a court declaration holding Najib accountable for the company's losses due to his breaches of duty and trust. The firm demands that Najib compensate for the US$1.18 billion in losses, including an additional US$120 million that allegedly entered his bank account. They are pursuing general and exemplary damages, additional interest, costs, and any other relief deemed appropriate by the court.
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