Najib had total control of SRC International

Najib had total control of SRC International

KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak had total control over SRC International as he amended the company’s constitution with the inclusion of a single clause during an extraordinary general meeting (EGM) that made him emeritus advisor.

“The minutes said Article 117 was added in the Memorandum and Articles of Association of SRC International,” said former SRC International director Tan Sri Ismee Ismail when questioned by deputy public prosecutor Ishak Mohd Yusoff.

“It said the prime minister (Najib) was made adviser emeritus of SRC International and that the board would give due consideration and implement any advice of the adviser emeritus in the best interest of the company,” he said.

“He could control the company through the CEO,” he added in reference to Najib due to the inclusion of Article 117.

The shareholders’ minutes stating that a clause had been added during the EGM were revealed by SRC International CEO and managing director Nik Faisal Ariff Kamil at a company board meeting on June 8, 2012, Ismee said.

During the cross examination by defence counsel Harvinder Singh, Ismee told the court he had seen Najib signing the meeting minutes or met him where the EGM was held.

Ismee agreed to Harvinderjit’s notion that the appointment of SRC directors did not need the prime minister’s approval since the power to appoint directors of SRC lies with the company’s board.

He however insisted that the board’s decision to appoint directors was still subject to the prime minister’s approval.

Harvinderjit then pointed to the fact that it was not stated in SRC’s memorandum and articles of association that the appointment of directors requires the prime minister’s approval, and that the prime minister’s role was only to formalise the decision.

SRC International, a former subsidiary of 1MDB, was fully owned by the Finance Ministry Incorporated during Najib’s time as finance minister.

The prosecution team is pushing the notion that the true power in directing and managing the affairs of 1MDB and SRC International lay not with the board of directors, as required by law, but with Najib.

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