KUALA LUMPUR – Rogue financier Low Taek Jho refused to cooperate with Singapore’s BSI Bank involving documents needed for due diligence relating to accounts of SRC International Sdn Bhd’s subsidiaries, the high court here heard today.
BSI’s former representative and head of wealth management services Kevin Michael Swampillai told judge Datuk Ahmad Fairuz Zainol Abidin that Jho Low had even threatened that he would stop doing business with the bank if he was continuously “badgered” to produce the documents.
He said, in his witness statement, the bank ultimately conceded to Jho Low as it faced threats of losing significant revenue.
“At the outset, the SRC International (Malaysia) Ltd (SRC BVI) account had raised many red flags (such as) large funds funnelled to obscure structures, with no information of the funds’ final destination, despite many unsuccessful attempts to elicit this information.
“The bank’s CAC (client acceptance committee) had repeatedly pressed Jho Low, through the relationship manager, for this information.
“However, he repeatedly refused to provide the requested information, citing the supposed strict confidentiality requirements and government-to-government nature of these transactions.
“Eventually, BSI stopped pressing Jho Low for this information, (due to) Jho Low’s displeasure (towards these requests), apart from being faced with threats,” he said.
The SRC BVI accounts mentioned in Swampillai’s witness statement are part of SRC International’s subsidiaries.
Swampillai was testifying in SRC International’s US$1.18-billion (RM5.59-billion) suit against Datuk Seri Najib Razak and the company’s former chief executive Nik Faisal Ariff Kamil today.
He also testified that the early transactions involving the SRC BVI account had triggered alarms as the funds credited breached the Asian Current Unit (ACU) limits, such as the US$864.5-million in SRC funds transferred to SRC BVI’s account with the bank between November 22, 2011 and April 2, 2012.
This, he said, prompted the bank to instruct all departments to provide advance notice of incoming transactions involving large funds to the operations department before these transactions took place.
“This was to allow the operations department to manage and ensure that the ACU limits were complied with.”
He also said Jho Low had represented himself to the bank’s relationship manager and senior management as Najib’s acting advisor, who would be overseeing SRC’s BSI transactions relating to SRC’s intended strategic investment internationally.
Apart from this information, Swampillai also said he was under the impression that Jho Low was acting under Najib’s instruction, based on what was told to him by the bank’s relationship manager and senior management.
He said Jho Low had made verbal representations and intimations that he was acting under the then prime minister, Najib.
“I was also aware at all material times that SRC, being the parent company of SRC BVI, was a company owned by the Finance Ministry where Najib was the minister.
“(Apart from these), the size of these transactions was of such high magnitude and frequency that they had to have some kind of apex approval, such as (those) issued by a highly placed government official such as the prime minister.”
SRC International filed the civil suit in May 2021, where it claimed Najib had committed breach of trust and power abuse as well as personally benefited from the company’s funds, and that he had misappropriated the said funds.
The company seeks general, exemplary and additional damages, as well as interest, costs and other appropriate relief provided by the court.
It also seeks the court’s declaration that Najib is responsible for the company’s losses due to his breach of duties and trusts and it demands that Najib pay back the RM42 million in losses that the firm has suffered.
Najib, 71, is currently serving his jail sentence for misappropriating SRC International funds amounting to RM42 million.
The trial before judge Fairuz continues. – March 5, 2024