KUALA LUMPUR, Sept 25 — Datuk Seri Najib Razak testified today that he was neither informed nor able to carry out an independent verification of RM3.6 billion in funds disbursed from SRC International Sdn Bhd, which were subsequently utilised and lost.

Najib is testifying as the first defendant in SRC International’s US$1.18 billion (RM5.58 billion) ongoing civil suit against him at the Commercial High Court.

The RM3.6 billion was part of the RM4 billion loan from the Retirement Fund Incorporated (KWAP) — a statutory body that manages the pension scheme for Malaysia’s civil servants — which was disbursed in two RM1.8 billion tranches by SRC International.

In his testimony, Najib said he lacked any position or power in the corporate governance structure to undertake any transactions for SRC International.

"As noted in my earlier answers, I do not have any control over the movement and utilisation of SRC funds, save for ratifying a decision made by the board, who are expected to conduct the necessary due diligence,” he said.

Najib also stated that he had no "fiduciary obligations” over the utilisation of the funds and proposed investments under his positions.

Under cross-examination by lawyer Datuk Lim Chee Wee, Najib agreed that Cabinet members had a fiduciary duty to act for the public good.

Former prime minister Najib, who was also finance minister at the time, was SRC International’s sole and exclusive shareholder by way of Minister of Finance (Incorporated).

Najib also agreed with Lim that members or officers of the public administration must ensure there is no conflict between public and personal interest.

The hearing resumes before Judge Datuk Ahmad Fairuz Zainol Abidin tomorrow.

Imprisoned since August 23, 2022, Najib is serving a 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 in jail and a RM50 million fine by the Pardons Board.

SRC, under its new management, sued Najib and its former directors Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Nik Faisal Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi, and Tan Sri Ismee Ismail in May 2021.

However, it later removed six names from the suit but retained Najib as the defendant.

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

SRC, as a plaintiff in the writ of summons, has alleged that Najib abused his power and obtained personal benefits from SRC International’s funds, as well as misappropriated the funds. Najib was SRC’s Emeritus Adviser 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 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 in losses it suffered, as well as damages for breach of duties and trust, including an order that Najib compensate the sum of US$120 million, which entered his bank account.