In SRC’s US$1.18b civil suit against him, Najib admits harbouring ‘certain regrets’ but disavows responsibility for all that has happened

KUALA LUMPUR, Oct 18 — Datuk Seri Najib Razak admitted in court today that he had “regrets” about certain things that transpired in former 1MDB subsidiary, SRC International Sdn Bhd, which saw the misappropriation of nearly RM4 billion from the country’s pension fund.

At the same time, he disavowed his responsibilities entirely, claiming he had no knowledge of the misappropriation.

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

Towards the end of his cross-examination, SRC co-counsel Kwan Will Sen asked Najib whether he took any responsibilities or at least part of it in respect of all matters that have transpired in SRC International.

Najib: It depends whether I am accountable but I have no knowledge of the funds that flow and never authorised that flow into my account.

Kwan: Can I take the answer as a no?

Najib: No.

Evidence in court has shown that a portion of the RM4 billion loan procured by SRC International from the Retirement Fund Incorporated (KWAP) made its way through several intermediaries before a sum of US$120 million (approx. RM371.7 million) eventually made its way back to Najib’s bank account.

In his court testimonies, Najib has repeatedly maintained he has neither knowledge nor issued any transfer authorisation of the aforementioned US$120 million entering his bank account.

Later, Najib was also asked if he harboured any regrets now over all matters that have transpired in SRC International which ultimately led to the company’s losses and the Malaysian people at large.

“I have certain regrets but based on that particular time, I do not have knowledge or information,” he said.

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, 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.