How did Najib allegedly orchestrate the SRC International misappropriation?

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Najib Allegedly Orchestrated SRC International Misappropriation Through Multiple Abuses of Power

Datuk Seri Najib Razak, in his former capacities as prime minister and finance minister, is alleged to have orchestrated the misappropriation of RM42 million from SRC International Sdn Bhd by abusing his authority to benefit himself through gratification. This involved his active participation in the company's formation, securing substantial loans with government guarantees from the Retirement Fund Incorporated (KWAP), and ensuring company funds ultimately flowed into his personal bank accounts. The prosecution contends that these actions were deliberate and premeditated, with Najib playing a central role in every transaction.
Involvement in SRC International's Formation and Loan Acquisition

Najib's alleged orchestration began with his involvement in the establishment of SRC International. He then proceeded to ensure that the Retirement Fund Incorporated (KWAP) would act as a favourable lender for the company. This led to SRC International obtaining RM4 billion through two separate loan applications from KWAP. Crucially, Najib arranged for government guarantees to be placed on these loans, a step that facilitated the substantial financial transactions despite SRC International's relatively small initial share capital of RM1 million.
Abuse of Power and Conflict of Interest

The prosecution highlighted Najib's alleged abuse of power, particularly his attendance at a February 2012 Cabinet meeting concerning government guarantees for SRC International's RM4 billion loan applications. Despite the Code of Ethics requiring a minister to declare any interest and recuse themselves from such discussions, Najib failed to do so. This failure is considered significant given evidence that he had previously recused himself from other Cabinet meetings to avoid conflicts of interest, suggesting an awareness of the ethical obligations.
Ultimate Control and Personal Benefit

Furthermore, the memorandum and articles of association of SRC International were allegedly amended to grant the prime minister ultimate power over the company, leading the prosecution to describe him as the "emperor of the company." This structure, coupled with company funds ultimately ending up in Najib's personal bank accounts, is presented as evidence of his direct interest and involvement in SRC International. The prosecution argues that Najib has failed to adequately explain how RM42 million was credited into his accounts, especially when his annual salary was less than RM1 million.
Irregularities in Loan Guarantees

The prosecution also pointed to irregularities in the loan approval process, specifically concerning the second government guarantee for a RM2 billion loan in March 2012. This guarantee was reportedly provided before SRC International's loan had been formally approved, a process facilitated by Najib's position as finance minister. This sequence of events, along with the overall high-risk nature of the loans from the private sector, underscores the prosecution's assertion that Najib played a pivotal, "orchestra conductor-like" role in the entire transaction.

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How did Najib allegedly orchestrate the SRC International misappropriation?

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