KUALA LUMPUR, March 27 — A former director of SRC International Sdn Bhd told the High Court today he saw Datuk Seri Najib Razak as a ‘chess grandmaster’ in the scheme of things that took place within the company.

Datuk Shahrol Azral Ibrahim Halmi was testifying as a third party in SRC International Sdn Bhd’s US$1.18 billion (RM5.58 billion) civil suit against Najib.

Shahrol Azral, who was former 1Malaysia Development Berhad (1MDB) chief executive, testified that whenever SRC International or 1MDB were mandated to execute a project, there would be ‘larger chess pieces’ that ‘moved around’ to facilitate said projects.

Such a scheme of things, he said, would result in SRC International’s board of directors consenting to decisions made in favour of Najib’s instructions which were represented by former executive director, Nik Faisal Ariff Kamil.

"My view at that time was that Najib was like a chess grandmaster on the board.

"One clear example in the SRC case is [investing in] uranium was put into SRC’s mandate. Around 2010, there was already a plan to diversify our electricity sources.

"And sure enough, a separate company called Malaysian Nuclear Power Corporation (MNPC) was set up sometime in 2011 to kickstart the nuclear programme in Malaysia.

"That was transformed into the Nuclear Energy Plan Implementation Office (NEPIO) directly under the PM’s Department,” he said under cross examination by Najib’s counsel Muhammad Farhan Muhammad Shafee.

Shahrol Azral said it was natural for him to make such a presumption that Najib had access to information the board was deprived of, explaining further that Nik Faisal had presented to the board Najib’s signature of approval on numerous occasions.

Shahrol Azral, however, said he could not speak for the other company directors if they had the same presumption.

Asked by Muhammad Farhan as to whether it had occurred to him to take the necessary diligence and not take a single piece of paper with Najib’s signature for granted, Shahrol Azral said the board took it as an instruction from the prime minister and executed it.

"We did raise concerns, but we have no choice,” he added.

Suggesting further that the board had breached its fiduciary duty to protect the company’s assets in respect of the RM4 billion loan from the Retirement Fund Incorporated (KWAP) — a statutory body that manages the pension scheme for Malaysia’s civil servants — that was utilised and disbursed, Shahrol Azral disagreed.

"We were under instruction. In my mind, when Nik presented this proposal to the board and when he encountered the board’s resistance (about the payment), he came back with a signed shareholder’s resolution with the PM’s approval.

"So my frame of mind was if this is what Najib wanted done, he should know something more than I do,” he said.

Earlier, Shahrol Azral also told the court that fugitive financier Low Taek Jho or Jho Low had relayed to him Najib’s wish to have articles from 1MDB to be included in the SRC International’s memorandum and articles of association (M&A) to have the ultimate say on the appointments of directors.

"The background is that this article is copied directly from the 1MDB M&A. I was personally involved in the discussions leading up to the inclusion and even the design of this article.

"He added that the initial view was that 1MDB and SRC needed to be free from political interference.

"That is why specifically there is no member of a political party or member of parliament. Also, the stipulation was that there should be no civil servants on the board,” he said.

The hearing before Commercial High Court judge Datuk Ahmad Fairuz Zainol Abidin resumes on April 15.

Imprisoned since August 23, 2022, Najib is serving his 12-year jail sentence and RM210 million fine for his conviction over the misappropriation of SRC International’s RM42 million funds, which has recently been reduced to six years of jail and RM50 million fine by the Pardons Board.

SRC, under its new management, had filed legal action against Najib and its former directors Datuk Suboh Md Yassin, Mohammed Azhar Osman Khairuddin, Nik Faisal, Datuk Che Abdullah @ Rashidi Che Omar, Shahrol Azral and Tan Sri Ismee Ismail in May 2021.

However, later, it removed five names from the suit and retained Najib and Nik Faisal as the defendant.

Additionally, Najib has brought the former named SRC International directors as third-party respondents.

SRC as a plaintiff in the writ of summons had alleged that Najib had abused his power and obtained personal benefits from SRC International’s funds as well as misappropriated the funds. Najib was SRC’s Emeritus Advisor from May 1, 2012, until March 4, 2019.

SRC International, which is now wholly owned by the Ministry of Finance Incorporated (MoF Inc), is seeking general damages, exemplary, additional interest, costs and other appropriate relief provided by the court.

SRC International is currently seeking a declaration from the court that Najib is liable to account for the company’s losses due to his breach of duties and trust.

The company is also seeking an order that Najib pay the US$1.18 billion (RM5.5 billion) in losses it suffered, and damages for breach of duties and trust; including an order that Najib compensate the sum of US$120 million which entered his bank account as well.