KUALA LUMPUR (July 18): A former finance official told the High Court today that companies owned by Minister of Finance Inc (MoF Inc) should have a representative from the Finance Ministry on their boards to safeguard the ministry's interests.

Datuk Fauziah Yaacob, noted, however, that 1Malaysia Development Bhd (1MDB) and its subsidiary SRC International Sdn Bhd did not have any ministry representative.

Fauziah, who was the ministry's deputy secretary-general for investments from 2012 to 2015, testified that her responsibility included overseeing some 120 companies placed under MoF Inc, including 1MDB and SRC.

She said a representative from the ministry would normally be appointed as a director in the MoF Inc companies so that it can give advice and give or guide the directions of the company.

"There were no finance ministry representatives in SRC and 1MDB," she said. "As a result, we do not know much about SRC's performance."

Replying to Deputy Public Prosecutor Datuk Suhaimi Ibrahim, Fauziah said the ministry tried to tackle the issue by appointing its representative in SRC as a director and a memorandum was drafted for this purpose in 2015.

She said the ministry chose Datuk Dr Mohd Isa Hussain, and his appointment was approved by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

She said she does not know the outcome of Isa's appointment as she retired on July 29, 2015.

Fauziah was testifying in former prime minister Datuk Seri Najib Razak's criminal breach of trust, abuse of power and money laundering trial involving RM42 million of SRC funds between Dec 26, 2014 and Feb 10, 2015.

Another witness who testified today was High Court senior assistant registrar S Mageswary, who produced court documents relating to Najib's defamation suit against former transport minister Tun Dr Ling Liong Sik.

Mageswary noted that there were four interlocutory applications and as a custodian of the documents, she produced the documents, including the statement of claim, in the criminal trial.

It was previously reported that after Barisan Nasional lost the 14th general election last year, Najib decided to drop the suit against Dr Ling, who was also formerly the MCA president.

The hearing before Justice Mohd Nazlan Mohd Ghazali continues on Monday.