Under scrutiny: Najib (in blue suit), waving as he arrives in court for the SRC International lawsuit. — Bernama
KUALA LUMPUR: Datuk Seri Najib Razak had wanted a RM2bil funding from Retirement Fund Inc (KWAP) to SRC International Sdn Bhd expedited so the latter would have sufficient funds to carry out its objectives, the High Court has been told.
The former prime minister was asked by SRC’s lawyer P. Gananathan about the “accelerated loan process” during cross-examination in a lawsuit filed against him and SRC’s former CEO Nik Faisal Ariff Kamil by the company.Najib agreed to Gananathan’s suggestion that he had spoken to the KWAP chairman to expedite the RM2bil financing.
“I wanted SRC to have sufficient capital to fulfil its objectives,” Najib said yesterday.
Gananathan: Why was it imperative for financing to be expedited?
Najib: For SRC to carry out its investment? Because it was conveyed to me that the investments were imminent.
Gananathan: Can you verify that the investment was imminent?
Najib: That was what was told to me. I was told to do the needful.
Asked to identify the investments, Najib said it was not his job scope to do so.
“That’s the job of the management. It’s not my job,” he said.
Najib said he only secured the financing for SRC but that did not absolve SRC’s board of directors from their responsibilities of looking into the investments.
“The board still had a role to play,” he said.
Najib denied that he had “pre-determined” the amount of loan required by SRC from KWAP and said that the amount was requested by SRC’s management, specifically Nik Faisal.
SRC had first asked for RM3.95bil and later RM3bil. Both were not approved. It then asked for RM2bil which was expedited.
Gananathan: If we go by the law, you were so involved in procuring the loan that you were carrying out the role of a director.
Najib: I disagree.
SRC, which was later taken over by new management, filed the legal action in May 2021, alleging that Najib had committed breach of trust, abuse of power, misappropriated the company’s funds and personally benefited from it.
It named Najib along with former directors Datuk Suboh Md Yassin, 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, it later removed six names from the suit and retained Najib and Nik Faisal as the first and second defendants. Najib has brought the former named SRC International directors as third-party respondents in the suit.
The company is seeking damages, interests, costs and a court declaration that Najib is responsible for the company’s losses due to a breach of duties and trust, and is demanding that Najib pay back the US$1.18bil in losses that it suffered.
It is also seeking US$120mil and US$2mil from Najib and Nik Faisal respectively, on account of fraudulent breach of fiduciary duties and breach of trust.
The trial before Justice Ahmad Fairuz Zainol Abidin continues tomorrow.
