Did SRC directors know about the RM3.95 billion KWAP loan application?

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SRC Directors Were Not Informed of the RM3.95 Billion KWAP Loan Application

Former SRC International director Tan Sri Ismee Ismail testified that the board of SRC International, as well as the board of its parent company 1MDB, were not informed by former SRC chief executive Nik Faisal Ariff Kamil about his application for a RM3.95 billion loan from the Retirement Fund (Incorporated) (KWAP). This lack of disclosure extended to Nik Faisal's proposal for 1MDB to act as the corporate guarantor for these loans and his meetings with KWAP representatives.
Failure to Inform SRC Board of Loan Application

Ismee stated unequivocally that the board of SRC International was not made aware that Nik Faisal had applied for the substantial RM3.95 billion loan from KWAP. He confirmed that no documents detailing this loan application were presented to the SRC board, despite it being Nik Faisal's duty as managing director and chief executive to inform his fellow board members of such significant financial dealings.
1MDB Board Also Kept Uninformed

The lack of transparency extended to the parent company, 1MDB. Ismee testified that the 1MDB board was not informed that Nik Faisal had met with KWAP representatives or that the pension fund was seeking further information regarding SRC. Consequently, the 1MDB board was also not made aware of Nik Faisal's proposal for 1MDB to serve as the corporate guarantor for the loans, and Ismee could not recall any board approval or activity related to guaranteeing the RM3.95 billion loan.
Loan Application Details and Subsequent Loan

The loan application form submitted to KWAP on August 12, 2011, indicated that Nik Faisal was seeking the loan in his capacity as the managing director and chief executive of SRC International. While the initial application was for RM3.95 billion, subsequent communications and investment papers prepared by KWAP led to a revised application and the eventual approval of a RM2 billion loan, which was backed by a government guarantee. Witnesses have previously testified that KWAP ultimately provided a total of RM4 billion in loans to SRC International in 2011 and 2012.

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Did SRC directors know about the RM3.95 billion KWAP loan application?

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