SRC director was in cahoots with CEO to defraud board

SRC director was in cahoots with CEO to defraud board

KUALA LUMPUR: Former SRC International chairman Tan Sri Ismee Ismail implicated former SRC International director, Datuk Suboh Md Yassin and former CEO Nik Faisal Ariff Kamil for defrauding its board of directors (BOD) in a deal with Gandingan Mentari Sdn Bhd and Putra Perdana Construction Sdn Bhd.

Suboh has surrendered to the police and he is currently under protective custody to testify in this case whereas Nik Faisal is missing. There are reports claiming that he is in Indonesia.

He agreed with defence lawyer Harvinderjit Singh’s contention regarding the BOD being kept in the dark over the deal where Gandingan Mentari would invest RM140 million with Putra Perdana Construction, for the latter to invest in South Africa.

The deal involved a 70/30 profit split between Gandingan Mentari and Putra Perdana Construction.

Harvinderjit: Suboh was not honest with the board, by looking at the signature (on documents). He was not honest with the board.

Ismee: He thought it was Gandingan Menteri.

Harvinderjit: Gandingan Mentari entered an agreement with Putra Perdana Construction as pseudo investment manager in mining South Africa, commit RM140 million to Putra Perdana Construction, and split 70/30 with Gandingan. This was not told to the board?

Ismee: Yes.

Harvinderjit: It appears that Suboh was complicit with Nik Faisal.

Ismee: Yes.

Earlier on Ismee told the court that he did not know what happened to the RM4 billion that was loaned by the Retirement Fund Incorporated (KWAP) to the company in 2011 and 2012 since the funds were transferred without paper trails.

Of the RM4 billion, Ismee revealed, half of the amount was received by SRC International with the BOD’s prior approval.

He said this during the trial of former premier Datuk Seri Najib Razak who is facing one abuse of power charge, three criminal breach of trust charges and three money laundering over funds amounting to RM42 million.