This article first appeared in The Edge Financial Daily on December 19, 2019

KUALA LUMPUR: The prosecution in Datuk Seri Najib Razak’s SRC International Sdn Bhd trial revealed that the former premier had ordered the appointment of directors to the company even before the board of its parent 1Malaysia Development Bhd (1MDB) approved the proposal via a directors’ circular resolution (DCR).

A DCR from the 1MDB board dated Oct 11, 2011 bearing the signatures of 1MDB directors Tan Sri Lodin Wok Kamaruddin, Tan Sri Ismee Ismail, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ong Gim Huat and Ashvin Jethanand Valiram was attached with a special rights redeemable preference shareholder’s resolution in writing dated Sept 15, 2011 bearing Najib’s signature.

The Sept 15, 2011 document said the Minister of Finance Inc (MoF Inc) agreed to the appointment of Datuk Suboh Md Yassin and Nik Faisal Ariff Kamil as directors of SRC, as well as the transfer of RM1.8 billion from the Retirement Fund Inc’s first RM2 billion loan to Falcon Private Bank Ltd in Switzerland and Julius Baer in Hong Kong.

For the past few weeks, the Pekan member of Parliament has defended himself by saying that whatever decisions with regard to SRC or 1MDB must come from their boards of directors first before being referred to him.

He also said sometimes he was not referred to by the boards, or that he did not know what was going on.

When grilled by prosecutor Datuk V Sithambaram yesterday, he admitted that he did not verify his signature on the document, resulting in the transfer of funds.

However, he maintained that the transaction was SRC's operational matter, so it did not come under his purview as an MoF Inc shareholder, and that MoF Inc was supposed to oversee the company.

“My only position in SRC was to advise on strategic matters only when the company sought my advice,” he said.

Sithambaram: If they took out the money, you mean to say it is not under your purview? [Ismee] said you had given approval for the money to be taken out,”

Najib: No, no I disagree, I didn’t approve of it.

However, when asked further by the lawyer appointed prosecutor, the former premier admitted he did not take any steps to verify the document bearing his signature to allow for the money to be transferred out of SRC.

Ismee had testified at the prosecution stage Najib had, through Nik Faisal, instructed the transfer of RM1.8 billion abroad as investments.

Sithambaram then turned to Suboh's appointment by showing SRC’s extraordinary general meeting minutes stating that the company was allowed by 1MDB to appoint Suboh as SRC director, to which the former premier agreed.

Sithambaram: I’m putting it to you that the shareholder minutes precede the DCR [directors' circular resolution] on 1MDB and other documents.

Najib: As it stands, correct.

However, the former premier said he is disputing the document dated Sept 15, 2011, marked as prosecution evidence 497.

Earlier, it was reported that he disputed signing nine documents, which he claimed could contain forged signatures, and had called for an expert witness to study the signatures.