No documents to justify SRC unit's RM19.5mil transfer to Umno, court told
KUALA LUMPUR : The High Court heard today that SRC International Sdn Bhd's subsidiary, Jendela Pinggiran Sdn Bhd (JPSB), was a dormant company with only RM500 in its bank account before it received RM43.96 million from its parent company, with no documentation to justify the transfer.
SRC International's lawyer, Razlan Hadri Zulkifli, told the court the former directors of JPSB had committed a breach of fiduciary duty following the lack of documents concerning the transfer.
'There were no resolutions, notes, internal memoranda, or even WhatsApp messages … nothing at all related to JPSB.
'JPSB had an opening balance of RM500 in April 2015. That remained the case until July 2015, when SRC International suddenly transferred RM43.96 million into JPSB's bank account.
'Not only were there no documents justifying the amount, obviously there were no documents justifying the RM19.5 million (transferred) to the defendants (Umno),' he said.
Razlan was submitting in a suit filed by SRC International and its subsidiaries, JPSB and Gandingan Mentari Sdn Bhd, against the Umno headquarters and its Selangor chapter to recover RM19.5 million in funds, including RM3.5 million transferred to Selangor Umno.
He said that after July 2015, JPSB returned to its 'natural state, very quiet, sitting there with a minimal sum of money in its bank account'.
Razlan said there had been no documentation because JPSB's purpose was to 'purely collect money and transfer it out'.
The plaintiffs claim that the defendants had dishonestly and knowingly received the funds from JPSB.
Umno's lawyer, Shahrul Fazli Kamarulzaman, denied the claim, suggesting that JPSB was a special vehicle with a dedicated account to run corporate social responsibility activities, accept funds for CSR, and disburse them to third parties.
He said the earlier examination of former JPSB director Suboh Yassin showed that there were documents available pertaining to the company's activities.
'PW-2 (Suboh Yassin) said there are other documents available outside the bundle, possibly with the authorities or in the plaintiff's office,' he said.
The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on July 30.
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