KUALA LUMPUR: The High Court was told that SRC International Sdn Bhd had broken compliance in its operations relating to corporate social responsibility (CSR) involving a RM250mil grant to help flood victims in the east coast.

Former SRC director Datuk Suboh Md Yassin, 68, said SRC had appointed Ihsan Perdana Sdn Bhd to head its CSR programmes in a letter dated Sept 3, 2014.

“I, myself and former CEO Nik Faisal Ariff Kamil had signed the letter,” he said on Thursday (June 20).

The witness said Nik Faisal had suggested for SRC to help the east coast flood victims.

A CSR grant of RM250mil was subsequently approved by the board of directors.

“The board discussed about it and agreed to hasten the process so the money could be used to help flood victims immediately,” he said.

The key witness was giving his explosive testimony under examination-in-chief by Deputy Public Prosecutor Datuk Ishak Mohd Yusoff at Datuk Seri Najib Razak’s corruption trial involving the misappropriation of RM42mil in SRC funds here.

However, Suboh said it was in his opinion that the grant involved a huge amount and should have gone through the existing procedure of getting a written approval through the board’s resolution first.

“I raised the issue about the company’s regulation and other issues pertaining to compliance as the grant would involve SRC’s funds.

“Nik Faisal said ‘it will be taken care of’ and this matter was approved by ‘pihak atas’ (superior),” he said.

Suboh said he had thought that the superior in question was Najib, who was the advisor emeritus of SRC.

“Therefore, I kept quiet and the matter was never raised,” he added.

Suboh, who is now retired, said if there was a balance to the grant which was unused, Ihsan Perdana must return the money to SRC after the grant expired.

“But to my knowledge, Ihsan Perdana had never given a feedback on the expenditure of the RM250mil.

“I do not know if there was any balance from the grant that was returned by Ihsan Perdana to SRC,” he said.

On July 4 last year, Najib claimed trial to a charge of abuse of power and three counts of criminal breach of trust linked to the 1MDB scandal.

He allegedly misappropriated RM42mil in funds belonging to SRC.