Day 24 of Najib's SRC trial: Ismee's cross-examination enters third day

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KUALA LUMPUR (June 13): Tan Sri Ismee Ismail will continue to be cross-examined for the third day today, as part of former premier Datuk Seri Najib Razak's RM42 million SRC International Sdn Bhd trial.

At the hearing in the High Court here yesterday, Ismee agreed with Najib's counsel Harvinderjit Singh that SRC's board was not informed about the existence of a secret account belonging to the company, which was opened in January 2011, by its managing director Nik Faisal Ariff Kamil.

The witness agreed the board did not know about the account, although board member and 1Malaysia Development Bhd (1MDB) chief executive officer Datuk Shahrol Azral Ibrahim Halimi had opened that AmBank Islamic account that ended with the last three digits 736.

This account was used to receive the RM20 million launching grant deposits and also the RM2 billion first loan from the Retirement Fund Incorporated (KWAP) on Aug 29, 2011. The funds were subsequently transferred out.

The witness -- who is the 39th called by the prosecution -- seemed stunned when he was showed that the money from the first KWAP loan was deposited into and transferred out from the 736 account.

Ismee also stood his ground by maintaining that Najib had total control over SRC following the amendment to the company's memorandum and articles of association, making the former premier the advisor emeritus of the company.

The amendment stipulates that "the prime minister shall be appointed and hold office as advisor emeritus to the company. The advisor emeritus shall advise the board on material matters and matters of strategic interest to Malaysia and the board shall give due consideration to and implement any advice of the advisor emeritus in the best interest of the company."

This meant that his views would have to be taken into account in material and strategic issues.

Ismee, Shahrol Azral and several others were appointed to the SRC board by Najib effective Aug 1, 2011, after 1MDB had acquired the company.

The witness had earlier testified on Monday during examination he resigned from SRC effective Aug 15, 2014 following governance issues in the company.

The Edge is bringing this hearing involving Malaysia's highest ranked politician live.

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