KUALA LUMPUR, Oct 17 — Datuk Seri Najib Razak today emphatically denied he was the "puppet master pulling the strings” in both SRC International Sdn Bhd and its board of directors.

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

SRC International’s co-counsel P. Gananathan had cross-examined Najib over the firm’s former chief executive Nik Faisal Ariff Kamil writing to Najib over the company’s application for additional funding after previously obtaining a RM2 billion loan from backed by government guarantees from the Retirement Fund Incorporated (KWAP).

When it was suggested that Nik Faisal had personally written to Najib for additional funding because the former knew Najib was the ‘puppet master pulling strings’ in the grand scheme of things, Najib outright dismissed the notion.

"No way, absolutely no,” he said.

Past witnesses have testified to Nik Faisal’s role in the company as the exclusive link between the company’s board of directors and Najib who was its adviser emeritus.

As adviser emeritus, Najib’s views would have to be taken into account in material and strategic issues in the company as per its Memorandum and Articles of Association.

Najib was also dismissive of the suggestion that SRC International’s board of directors were accustomed to act in accordance with his direction.

Gananathan also asked Najib if he had questioned the company’s urgent need for additional funding in 2012 despite a lack of concrete development in relation to its first RM2 billion loan.

Najib replied he did not but stated he expressed confidence in the due process at the time.

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

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

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

However, six names were later removed from the suit, leaving Najib as the sole defendant.

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

SRC, as the plaintiff in the writ of summons, has alleged that Najib abused his power to obtain personal benefits from SRC International’s funds and misappropriated these funds. Najib served as SRC’s Emeritus Adviser from May 1, 2012 until March 4, 2019.

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

The company seeks a declaration that Najib is liable for the company’s losses due to his breach of duties and trust. It is also seeking an order for Najib to pay US$1.18 billion in losses suffered, along with damages for breach of duties and trust, including an order for him to compensate the US$120 million that entered his bank account.