In a gripping testimony before the High Court in Kuala Lumpur, Datuk Suboh Md Yassin, a former director of SRC International Sdn Bhd, unveiled the extent of control exerted by Datuk Seri Najib Razak over the strategic investment company. The trial, involving allegations of breach of trust and misappropriation of RM6.6 billion, shed light on Najib's pervasive influence through his proxy, former CEO Nik Faisal Ariff Kamil.
Suboh, 73, painted a stark picture of governance at SRC, asserting that all significant decisions required Najib's approval. He emphasized that directives issued by Najib via shareholder minutes superseded the authority of the board of directors, rendering their roles essentially ceremonial. Such directives covered crucial matters like financing, executive appointments, and even the formation of subsidiaries, often circumventing standard corporate procedures.
The former director described a hierarchical structure where Najib's commands were unquestionably followed, likening his role to that of a civil servant obeying directives from a superior. This unusual governance framework, Suboh noted, sidelined typical corporate autonomy, thereby consolidating power in Najib's hands, unlike practices seen in conventional private enterprises.
Suboh's testimony underscored the intricate power dynamics within SRC, highlighting Nik Faisal as the intermediary through whom Najib's directives were communicated and executed. He recounted instances where Nik Faisal's instructions bore Najib's authority, leaving the board of directors uninformed and excluded from critical decision-making processes.
Under cross-examination, Suboh elaborated on how Nik Faisal, aware of Najib's influence, instilled a climate of fear among board members, implying that failure to comply with Najib's wishes could result in dismissal. This assertion suggested a culture of compliance driven by the fear of reprisal, further solidifying Najib's centralized control over SRC.
The trial, which commenced with SRC's civil suit against Najib and Nik Faisal, seeks accountability for alleged breaches of trust and financial mismanagement that led to substantial losses. SRC's legal maneuvering aims not only to reclaim RM42 million in damages but also to secure a judicial declaration of Najib's liability for the company's financial woes.
In response to the allegations, Najib's defense team, led by lawyer Muhammad Farhan Muhammad Shafee, sought to clarify the operational structure of SRC, focusing on Nik Faisal's pivotal role as the conduit between Najib and the board. Despite these attempts, Suboh's detailed testimony painted a compelling narrative of hierarchical control and centralized decision-making, challenging the defense's depiction of Najib's involvement as merely procedural.
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