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A former director of SRC International Sdn Bhd testified that the board executed shareholder orders "in good faith" and without suspicion, believing these directives reflected the federal government’s intent to invest in national interests.
Tan Sri Ismee Ismail made this statement while testifying in SRC International’s US$1.18 billion (RM5.58 billion) civil suit against former prime minister Datuk Seri Najib Razak at the Commercial High Court. Ismee emphasized that SRC International was established as a "special purpose vehicle" to facilitate investment activities for the federal government, particularly the Finance Ministry.
Najib, who was both the prime minister and finance minister at the time, was the sole shareholder of SRC International through the Minister of Finance (Incorporated). He also served as the adviser emeritus of SRC International, a role whose authority could not be challenged by the board as per the company’s Memorandum and Articles of Association (M&A).
Ismee contended that Najib's claims of lacking authority over SRC International were "absolutely untrue and inaccurate." He clarified that he never suggested investments using funds from the Retirement Fund Incorporated (KWAP) and was not involved in the decision to undertake overseas investments using KWAP funds transferred to SRC BVI.
Evidence presented in court showed that US$1.18 billion was transferred out of SRC International (Malaysia) Limited’s (SRC BVI) into various intermediaries between December 2011 and April 2014. However, none of these funds were used for their intended purpose of ensuring a long-term supply of energy and natural resources.
Ismee underscored that the board had no authority over proposed investments, which were directed by shareholder resolutions beyond his control. He stated, "So the claims sought by the first defendant (Najib) against me are absolutely baseless."
Ismee also noted that he had no authority over SRC BVI’s administration, which was established without his knowledge. He served as a director of SRC International from August 2011 until his resignation in August 2014.
Najib has been imprisoned since August 23, 2022, serving a reduced sentence of six years and an RM50 million fine for the misappropriation of SRC International’s RM42 million funds.
SRC International, now under the Ministry of Finance Incorporated (MoF Inc), sued Najib and its former directors in May 2021. While six names were later removed from the suit, Najib remains the primary defendant.
SRC alleges that Najib abused his power for personal gain and misappropriated the company’s funds. The company seeks general and exemplary damages, additional interest, costs, and other court-ordered relief, including a declaration that Najib is liable for the company’s losses and compensation for the US$1.18 billion in losses and US$120 million that entered his bank account.
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