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No finance ministry representative to monitor SRC - Witness

Last update: 18/07/2019
KUALA LUMPUR, July 18 (Bernama) -- A witness told the High Court here today that SRC International Sdn Bhd (SRC) which was under the purview of the Minister of Finance Incorporated (MoF Inc) did not have a Finance Ministry representative to monitor it as required.

Finance Ministry former Treasury deputy secretary-general Datuk Fauziah Yaacob, 63, said the ministry monitored companies under the MoF Inc by appointing a representative to the Board of Directors.

"The purpose is for the ministry representative to provide advice and together with other members of the board determine the direction and future of the company," she said.

The 53rd prosecution witness was responding to deputy public prosecutor (DPP) Datuk Suhaimi Ibrahim on the 40th day of former prime minister Datuk Seri Najib Tun Razak's trial.

DPP: During Datuk's time while holding the post, did SRC's board of directors have a member from the Finance Ministry?

Fauziah: None.

DPP: So how was the monitoring done if there was no representative from the ministry?

Fauziah: There was no monitoring. Even though there were efforts to obtain the company's financial statements, no feedback was given to the ministry.

DPP: What did Datuk as the head, do about it?

Fauziah: The Finance Ministry submitted a proposal to appoint Datuk Seri Dr Mohmad Isa Hussain as a member of SRC's board of directors in a memo dated March 3, 2015.

Referring to the memo, the witness said the purpose among others, of appointing Mohmad Isa was to set SRC's direction, which the ministry felt was unclear in terms of business and investment.

"SRC was also among the companies that were often late in sending their financial statement to the finance ministry.

"The memo was approved by then Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah," said Fauziah who retired on July 29, 2015.

Till the day she retired, the witness said she had no knowledge of whether Mohmad Isa was indeed appointed.

When cross-examined by Najib's counsel Harvinderjit Singh, she said she never saw throughout her term, any memo of approval by the finance ministry to take SRC under Mof Inc.

Fauziah agreed with the lawyer that the appointment proposal was only raised when the media started publishing reports about 1Malaysia Development Berhad (1MDB) and rumours circulating within the ministry itself.

Hearing continues on Monday before Justice Mohd Nazlan Mohd Ghazali.


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