This article first appeared in The Edge Malaysia Weekly on August 5, 2019 - August 11, 2019
THE last couple of weeks of Datuk Seri Najib Razak’s SRC International Sdn Bhd trial revealed significant obfuscation by individuals handling transactions involving the former premier’s AmBank accounts as well as those of SRC between 2011 and 2015.
The proceedings also exposed how some banks deal with their high-profile clients.
The cross-examination of prosecution witness Joanna Yu — the then AmBank relationship liaison manager for the accounts — revealed that Najib’s so-called go-to person, Low Taek Jho, had avoided banking protocols on multiple occasions.
Although it is understood that relationship managers are not allowed to deal with third parties who are not officially authorised to deal with an account, the rules were bent on several instances.
Yu communicated mostly with Low, who had no official role, even to the extent of executing his transaction instructions despite the mandate holder for Najib’s accounts being SRC chief executive Nik Faisal Ariff Kamil. Low had dealt with AmBank since the days of Utama Banking Group Bhd (UBG) in 2007.
For an attempted transfer of RM139 million from SRC’s account in July 2014, Low called for it to be done via three bank drafts to avoid naming the company as the source.
When the drafts triggered an alert in the receiving Public Bank, Low prohibited Yu from telling AmBank officers that the drafts were from SRC, and instead to state that the company was wholly-owned by the Malaysian government.
At one point, Low wanted AmBank to be told that the funds came from Gandingan Mentari Sdn Bhd — SRC’s subsidiary. Moreover, Yu was asked to assure Public Bank that she personally knew then-SRC director Datuk Suboh Md Yasin under “know your customer” rules even though she had never met Suboh prior to that.
Eventually, the bank drafts were cancelled. However, a subsequent RM35 million was sent from SRC’s account to an account held by Putra Perdana Construction Bhd.
From there, RM34.99 million was transferred to Permai Binaraya Sdn Bhd. After that, RM27 million — dubbed ‘Eagle 27’ by Low — went into Najib’s account ending 880. Based on Yu’s phone chats, Low informed her that Eagle 27 was a donation from royalty even though the funds originated from SRC.
On numerous occasions, Yu acceded Low’s requests for her to email Nik Faisal about bank dealings via Google mail and not through his official company email.
When Najib opened his accounts in 2013, Low told Yu to pass the cheque books to him, and not to Nik Faisal. The account mandate holder was to only sign documents acknowledging receipt of the cheques.
Similarly, Low ordered Yu to “shred all old statements” — referring to statements on Najib’s old accounts and credit cards —after the accounts were closed in 2013, but she did notsaid she did not resond., she passed them to Nik Faisal.
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