Thursday, October 22, 2015

Who is running SRC International today?

Malaysians read with interest, the first ever media statement by SRC International Sdn Bhd, a mysterious former subsidiary of 1Malaysia Development Bhd (1MDB) which has been taken over directly by the Ministry of Finance.

SRC International which is funded by a RM4 billion loan from Kumpulan Wang Amanah Persaraan (KWAP), dismissed outright all allegations of misappropriation of funds.

The Wall Street Journal has previously exposed the fact that SRC International has transferred a total of RM42 million to the Prime Minister’s personal bank account.  The transfers were carried out between December 2014 and March 2015, via its subsidiary Gandingan Mentari Sdn Bhd and Ihsan Perdana Sdn Bhd.  The latter company carries out corporate social responsibility work of 1MDB.

The above transactions clearly pointed to criminal breach of trust as substantial funds from a Ministry of Finance subsidiary were transferred to the personal accounts of the Minister of Finance.  It has also been exposed by the Sarawak Report that the former Attorney-General, Tan Sri Abdul Gani Patail was moments charging Dato’ Seri Najib Razak for corruption or criminal breach of trust over the above transactions before being unceremoniously retired and replaced by the Prime Minister.

However, for the first time, SRC International released a media statement which said, “none of it was misappropriated as claimed by those with malicious intent.”

SRC further added, “We strongly reject these allegations. Having conducted an internal investigation, we believe these claims were based on documents that were fabricated, therefore representing a deliberate attempt to mislead the public.”

It appears that SRC International has taken a leaf off its former parent, 1MDB in making sweeping denials without specifics.

The questions are very simple.  Did SRC International transfer a total RM50 million to its subsidiary, Gandingan Mentari?  Did Gandingan Mentari then transfer a total of RM50 million to Ihsan Perdana?  Further to that did Ihsan Perdana which acts on behalf of 1MDB, transfer RM42 million of that amount to the Prime Minister?  Those are very simple “yes” or “no” questions which doesn’t take a rocket scientist to answer.

Instead, SRC chose to be hyperbolic, calling “on those quarters who are engaged in efforts to overthrow the government to desist from involving SRC in their political campaign and to avoid making false and unsubstantiated allegations”.

We would like to ask the Ministry of Finance to inform us, who exactly is running SRC International today.  Who actually carried out the “internal investigations” and more interestingly, who wrote and approved the media statement?

As far as we are aware, the top executive of SRC, Nik Faisal Ariff Kamil, a close associate of Low Taek Jho, has been on the run for the past 6 months.  Similarly, another key director of SRC International, Datuk Suboh bin Mohd Yassin has also disappeared.  Both individuals are wanted by the Malaysian Anti-Corruption Commission (MACC) to assist with investigations.

Is there already a new management team put in place to run SRC International?  Are the identities of this new team top secret as well?

In addition, the Ministry of Finance Secretary-General, Tan Sri Irwan Serigar must let us know why no directors representing the Ministry has been appointed to SRC International to monitor its activities.  Such an appointment is never more important given that the questions of the governance of its subsidiary has been in the spotlight.

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