KUALA LUMPUR, Oct 16 — Former prime minister Datuk Seri Najib Razak today reiterated his testimony in court, firmly denying any explicit involvement in the formation of SRC International Sdn Bhd, a former subsidiary of 1Malaysia Development Berhad (1MDB).
Najib is 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, previously cross-examined Najib about his role in the establishment of SRC International by 1MDB, referencing a draft letter he received from then 1MDB chief executive Datuk Shahrol Azral Ibrahim Halmi in August 2010.
While Najib acknowledged awareness of 1MDB’s intention to establish SRC International, he insisted that he did not make any final decisions regarding the proposal at that time.
“It was their request; it was never my idea to establish SRC. I have stated this in court. I only gave my final approval after the recommendation for SRC International’s establishment,” he said during cross-examination.
In earlier court proceedings, Najib testified that the concept of SRC International was timely, aligning with the 10th Malaysian Plan, which emphasised the importance of energy security as a key area of national development.
Regarding SRC International’s procurement of a RM2 billion loan backed by government guarantees from the Retirement Fund Incorporated (KWAP), Najib faced questions about his involvement in securing the financing, given his roles as prime minister and finance minister.
This was particularly notable as SRC International had no board of directors and only two individuals in its management at the time of its incorporation in January 2011.
Najib also rejected the assertion that he was instrumental in facilitating the RM2 billion loan from KWAP, despite evidence presented in court indicating he had requested the financing be expedited.
“(It was expedited) for SRC International to proceed with its investments because I was informed that those investments were imminent,” he said.
Gananathan suggested that the loan’s procurement and amount had been predetermined by Najib from the outset.
“I disagree. I trusted the management. As long as they knew what they were doing, I went along with it,” Najib responded.
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 Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Shahrol Azral, 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.
